Benefits of Capital Markets - SS1 Economics Past Questions and Answers - page 1
What is the primary purpose of capital markets?
By providing investment advice
By diversifying their portfolio
By offering insurance against market volatility
By offering guaranteed returns on investment
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Which of the following is a benefit of capital markets for businesses?
Limited access to funding sources
Difficulty in raising long-term capital
Increased competition from investors
Opportunities for growth and expansion
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What is the role of capital markets in promoting economic growth?
Restricting investment in new businesses
Discouraging the adoption of new technologies
Facilitating investment in new businesses and technologies
Encouraging short-term investments
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How do capital markets help investors manage risk?
By providing investment advice
By diversifying their portfolio
By offering insurance against market volatility
By offering guaranteed returns on investment
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Explain how capital markets can help to channel savings into productive investments.
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Mention 3 benefits of the capital market.
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