Benefits of Capital Markets: Benefits To Government - SS2 Accounting Past Questions and Answers - page 1
What is the primary benefit of capital markets to governments?
Raising capital
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Managing risk
Diversifying funding sources
All of the above
How can governments use derivatives in the capital markets?
To raise capital
To manage risk
To diversify funding sources
To establish credibility
Which of the following is an example of a project that a government could finance through capital markets?
Building a new airport
Running a public school
Providing welfare benefits
All of the above
How can participating in the capital markets help a government establish credibility?
By reducing the government's reliance on taxes
By increasing investor confidence
By diversifying the government's funding sources
By managing financial risks
Which of the following is a benefit of capital markets for governments, but not for individuals?
Diversifying funding sources
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Raising capital
Managing risk
Establishing credibility
What is the primary purpose of capital markets for governments?
How can capital markets help governments manage financial risks?Â
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