ASSERTION: Market for trading long-term financial instruments such as shares and debentures is known as capital market. REASONING: A capital market provides liquidity to investment in securities.

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A is true, and R is not the correct explanation for A. Explanation: Both A and R are true, but R is not the correct explanation for A because the capital market is the market for long‑term instruments; it does provide liquidity (through the secondary market), but that doesn’t define it.

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