Capital markets - SS3 Commerce Past Questions and Answers - page 1
What is the primary function of capital markets?
Buying and selling goods and services
Facilitating the flow of funds
Distributing government subsidies
Which of the following financial instruments is commonly traded in capital markets?
Real estate properties
Consumer goods
Stocks and bonds
What is the role of investors in capital markets?
Borrowing funds from the market
Providing goods and services to consumers
Purchasing and selling financial instruments
What do businesses and governments typically use capital market funds for?
esearching and developing new products
Distributing dividends to shareholders
Reducing consumer prices
Who are the key participants in capital markets?
Media outlets and advertising agencies
Individual investors and institutional investors
Non-profit organizations and charitable foundations
What is the purpose of capital markets in the economy?
The purpose of capital markets is to facilitate the flow of funds between investors and borrowers, enabling businesses and governments to raise capital for various purposes and providing investment opportunities for individuals.
What are some factors that can influence the prices of financial instruments in capital markets?
Possible answers could include economic conditions, market sentiment, geopolitical events, changes in interest rates, company performance, or regulatory changes.