Functions of Capital Market Institutions - SS2 Economics Past Questions and Answers - page 1
1
What is the primary function of capital market institutions?
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A
To provide a platform for buying and selling securities
B
To provide investment advice to investors
C
To manufacture securities
D
To regulate financial markets
2
What is the role of capital market institutions in managing risk?
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A
Providing risk management tools such as derivatives
B
Pricing securities
C
Facilitating capital raising
D
None of the above
3
What is the benefit of providing liquidity to investors?
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A
Enables investors to buy and sell securities quickly and easily
B
Provides investment advice to investors
C
Facilitates capital raising
D
None of the above
4
How do capital market institutions contribute to economic growth and development?
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A
By channelling savings from investors into productive investments
B
By providing liquidity to investors
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C
By regulating financial markets
D
By managing risk for investors
5
List three examples of securities that are traded on capital markets.
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6
What is the role of capital market institutions in pricing securities?
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