Question on: SS2 Economics - Functions of Capital Market Institutions
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
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Correct Option: A
(Capital market institutions are channelling savings from investors into productive investments. This productive investment can translate into increased productivity and income, which will in turn contribute to economic growth and development)
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