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Question
In its vital role as a financial intermediary, capital markets satisfies the tastes of the savers and the need of the investors. Evaluate the given statement.
Solution
- Mobilize the financial resources on a nation-wide scale.
- Secure the required foreign capital and know-how to promote economic growth at a faster rate.
- Ensure the most effective allocation of the mobilized financial resources by directing the same either to such projects which are capable of the highest yield or to the underdeveloped priority areas where there is an urgent need to promote balanced and diversified industrialization.
The capital market satisfies the tastes of savers and the needs of investors through its various financial instruments and institutions.
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