Knowee
Questions
Features
Study Tools

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

Question

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

🧐 Not the exact question you are looking for?Go ask a question

Solution

The primary aim of the capital market is C. Allocating financial resources efficiently.

Here's why:

A. Providing government subsidies: This is not the primary aim of the capital market. Government subsidies are usually provided by the government to help businesses or individuals.

B. Facilitating consumer loans: While capital markets can influence consumer loans, their primary aim is not to facilitate these loans. Consumer loans are usually provided by banks or other financial institutions.

C. Allocating financial resources efficiently: This is the primary aim of the capital market. Capital markets are platforms where buyers and sellers engage in trade of financial securities like bonds, stocks, etc. They channelize savings and investments between suppliers of capital such as retail investors and institutional investors, and users of capital like businesses, government and individuals, thus enabling efficient allocation of financial resources.

D. Controlling inflation rates: This is not the primary aim of the capital market. Inflation rates are usually controlled by the central bank or the government through monetary and fiscal policies.

This problem has been solved

Similar Questions

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

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

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

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 would likely increase the supply of financial capital in the loanable funds market?Question 2Answera.An increase in interest rates.b.A decrease in government borrowing.c.A decrease in private savings.d.An increase in consumer spending.

1/3

Upgrade your grade with Knowee

Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.