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Characteristic(s) of capital market instruments is(are): a. They provide low risk and high returns. b. Higher...

Characteristic(s) of capital market instruments is(are):

a. They provide low risk and high returns.

b. Higher resale value when interest rates fall.

c. They are traded in the money market.

d. (a) and (b).

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Answer #1

All kinds of instruments are traded in the Capital Matket. Debt are less risky instruments.  Money market is not Capital market. Capital Market Instruments provide Higher resale value when Interest Rate falls becuase when Interest Rate falls these instruments become attractive as they provide higher return when interest rate falls.

Money Market is where short term instruments are traded.

Option D is correct. a and b

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