Benefits of Capital Markets - SS1 Economics Past Questions and Answers (page 1)

1

What is the primary purpose of capital markets?

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A

By providing investment advice

B

By diversifying their portfolio

C

By offering insurance against market volatility

D

By offering guaranteed returns on investment

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2

Which of the following is a benefit of capital markets for businesses?

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A

Limited access to funding sources

B

Difficulty in raising long-term capital

C

Increased competition from investors

D

Opportunities for growth and expansion

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3

What is the role of capital markets in promoting economic growth?

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A

Restricting investment in new businesses

B

Discouraging the adoption of new technologies

C

Facilitating investment in new businesses and technologies

D

Encouraging short-term investments

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4

How do capital markets help investors manage risk?

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A

By providing investment advice

B

By diversifying their portfolio

C

By offering insurance against market volatility

D

By offering guaranteed returns on investment

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5

Explain how capital markets can help to channel savings into productive investments.

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6

Mention 3 benefits of the capital market.

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Benefits of Capital Markets - SS1 Economics Past Questions and Answers - page 1