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Question
Which of the following are the functions of capital market?
Options
It enables borrowers to obtain needed funds at a reasonable cost.
It helps investors in earning minimum available return on their funds.
It brings about an imbalance between demand and supply of capital.
It provides a mechanism for transfer of claims on capital funds.
Solution
It enables borrowers to obtain needed funds at a reasonable cost and it provides a mechanism for transfer of claims on capital funds.
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RELATED QUESTIONS
A market is used for trading long-term securities. Identify the market and explain any four functions of the above.
In ______ only buying of securities takes place while in ______ both buying and selling of securities takes place.
Explain any two functions of Capital Market.
Distinguish between Primary Market and Secondary Market.
