Consider the following markets: 1. Government Bond Market 2. Call Money Market 3. Treasury Bill Market 4. Stock Market. How many of the above are included in capital markets?

1. Government Bond Market — Government securities, especially medium- and long-term dated bonds, are treated as part of the capital market. Verdict: Included.

2. Call Money Market — Call money is overnight/very short-term inter-bank borrowing; it is a classic money market instrument. Verdict: Not included.

3. Treasury Bill Market — Treasury Bills have maturity of less than 1 year, so they belong to the money market, not capital market. Verdict: Not included.

4. Stock Market — Equity shares are long-term securities and form a core part of the capital market. Verdict: Included.

So, only 2 items (1 and 4) are included in capital markets. Correct answer: (b) Only two.

Correction: My earlier derived option (c) was a mistake; the item-wise analysis itself supports (b).