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one of the key functions of the capital market in the economy?  A. Encouraging hoarding of financial resources  B. Creating monopolistic control over financial assets  C. Allocating financial resources to their most productive uses  D. Restricting access to investment opportunities

Question

one of the key functions of the capital market in the economy?  A. Encouraging hoarding of financial resources  B. Creating monopolistic control over financial assets  C. Allocating financial resources to their most productive uses  D. Restricting access to investment opportunities

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Solution

The correct answer is C. Allocating financial resources to their most productive uses. This is one of the key functions of the capital market in the economy. It helps to channel savings and investment funds to businesses, individuals, and governments that can put these funds to productive use, thereby contributing to the overall growth and development of the economy.

Similar Questions

5.the capital market primarily aim to achieve?  A. Providing government subsidies  B. Facilitating consumer loans  C. Allocating financial resources efficiently  D. Controlling inflation rates

13.Which function of the capital market involves the creation of a secondary market for existing securities?  A. Mobilization of savings  B. Price determination  C. Facilitating company growth  D. Risk mitigation

Which of the following is an objective of the Capital Market?  A. Ensuring stability in the financial system  B. Promoting international trade  C. Providing short-term financing to businesses  D. Mobilizing long-term savings for investment

Which one of the following indicates the role of Capital Market?  A. Facilitating short-term borrowing and lending  B. Regulating interest rates  C. Financing government budget deficits  D. Managing foreign exchange reserves

27.The primary objective of the capital market?  A. Profit maximization for investors  B. Facilitating the transfer of funds from savers to investors  C. Short-term capital gains  D. Promoting speculative trading

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