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
Managing risk
Diversifying funding sources
All of the above
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How can governments use derivatives in the capital markets?
To raise capital
To manage risk
To diversify funding sources
To establish credibility
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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
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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
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Which of the following is a benefit of capital markets for governments, but not for individuals?
Diversifying funding sources
Raising capital
Managing risk
Establishing credibility
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What is the primary purpose of capital markets for governments?
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How can capital markets help governments manage financial risks?
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