The correct answer is Both Statement I and Statement II are trueImportant Points Statement I : Capital market plays an important role in mobilising resources and diverting them in productive channels. This statement is true becauseCapital market plays an important role in mobilising resources, and diverting them in productive channels. In this way, it facilitates and promotes the process of economic growth in the country. Statement II : Capital market is a market where buyers and sellers engage in trade of financial securities like bonds, stocks, etc. This statement is trueCapital market is a market where buyers and sellers engage in trade of financial securities like bonds, socks, etc. The buying/selling is undertaken by participants such as individuals and institutions. Generally, this market trades mostly in long term securities.