Understanding Market Capitalization to Nominal GDP Ratio

The question asks us to rank several countries—the U.K., India, China, Brazil, and Japan—based on their market capitalization to nominal GDP ratio. This ratio compares the total value of a country's publicly traded companies (market capitalization) to the total value of goods and services produced in the country within a specific period (nominal GDP). A higher ratio might indicate a larger stock market relative to the size of the economy.

The specific metric used is:

$$ \text{Market Capitalization to Nominal GDP Ratio} = \frac{\text{Total Market Capitalization}}{\text{Nominal GDP}} $$

We need to arrange these countries in ascending order of this ratio as of December 2024, referencing the Economic Survey 2024-25.

Country Ranking Based on Market Cap/GDP Ratio (Ascending)

Based on the Economic Survey 2024-25 data for December 2024, the countries arranged in ascending order of their market capitalization to nominal GDP ratio are as follows:

Detailed Breakdown of the Order

• Brazil (D): Appears first, indicating the lowest market cap to GDP ratio among the selected countries.
• China (C): Ranks second, showing a slightly higher ratio than Brazil.
• U.K. (A): Follows China, indicating a further increase in the ratio.
• India (B): Is placed fourth, signifying a higher market cap relative to its GDP compared to the U.K.
• Japan (E): Ranks last, suggesting the highest market capitalization to nominal GDP ratio among the group as of December 2024.

Therefore, the correct sequence representing the ascending order is D, C, A, B, E.