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