Capital markets - SS3 Commerce Past Questions and Answers - page 1

1

What is the primary function of capital markets?

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A

Buying and selling goods and services

B

Facilitating the flow of funds

C

Distributing government subsidies

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2

Which of the following financial instruments is commonly traded in capital markets?

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A

Real estate properties

B

Consumer goods

C

Stocks and bonds

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3

What is the role of investors in capital markets?

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A

Borrowing funds from the market

B

Providing goods and services to consumers

C

Purchasing and selling financial instruments

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4

What do businesses and governments typically use capital market funds for?

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A

esearching and developing new products

B

Distributing dividends to shareholders

C

Reducing consumer prices

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5

Who are the key participants in capital markets?

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A

Media outlets and advertising agencies

B

Individual investors and institutional investors

C

Non-profit organizations and charitable foundations

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6

What is the purpose of capital markets in the economy?

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7

What are some factors that can influence the prices of financial instruments in capital markets?

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