Question

6. What important functions do capital markets perform for national and global economies? Why should a...

6. What important functions do capital markets perform for national and global economies?
Why should a country be concerned about the relative strength and performance of its capital markets?

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

The role of the capital markets for the nation or economy are:

  1. It mobilizes the domestic savings by pooling them towards the productive projects.
  2. The capital market increases the wealth distribution in the nation.
  3. It increases the productivity of the economy to encourage improvement in employment.
  4. The capital market provides equity capital and infrastructure development capital.
  5. It promotes public-private sector partnership.

Thus, every country and its government has to take care of its capital markets and apprehend the relative strength and performance of its capital markets because of its various benefits provided to the nation.

============

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Why is it important for managers to understand the nature of the forces on the global...
Why is it important for managers to understand the nature of the forces on the global environment that are acting on them and their organizations? How do political, legal, and economic forces shape national culture? What characteristics of national culture do you think have the most important effect on how successful a country is in doing business abroad?
Which of the H.R Functions seem to be most important? And why? Explain how do the...
Which of the H.R Functions seem to be most important? And why? Explain how do the Economic, Technological, and Cultural environments affect HRM in a global environment? How can Saudi companies comply with these challenges? What is Ethics, explain its importance for organization? Give examples of ethical and unethical behaviors in organizations? Explain how HRM practices differ in small businesses and in international setting? compare with examples?
What a Global Cost is and what it means to have availability of Capital? What is...
What a Global Cost is and what it means to have availability of Capital? What is WACC and why is it an important measure? What does knowing your company's WACC allow a firm to do? What are some motives and alternative instruments to source equity globally? Is there optimal capital structure for multinationals?
what do you think is the most important function of Operations Management and why. Functions include...
what do you think is the most important function of Operations Management and why. Functions include strategy, supply chain management, process and facility design, planning, quality, and continuous improvemen
3. Why do you think economists really like to talk about competitive markets? 4. What does...
3. Why do you think economists really like to talk about competitive markets? 4. What does the concept of low or no barriers to entry mean? Why is it so important to understand barriers to entry? 5. Give me 5 examples of price takers in perfectly competitive markets.
What are the most important industrial and national capital structure patterns exhibited globally? (Describe at least...
What are the most important industrial and national capital structure patterns exhibited globally? (Describe at least four). How do these compare to dividend patterns observed around the world?
2.All societies face scarcity. Generally, resources are limited and human wants are infinite. How do economies...
2.All societies face scarcity. Generally, resources are limited and human wants are infinite. How do economies attempt to overcome the problem of scarcity? A.Through the division and specialization of labor B.By producing all of the goods and services we consume C.By importing more consumer goods D.By exporting more capital goods 3.People have different skill sets and, therefore, are better at some jobs than others. If people _________ and produce what they do best, they will be more productive than if...
In 2020, the world is economically held hostage to the COVID-19 pandemic. What role should capital...
In 2020, the world is economically held hostage to the COVID-19 pandemic. What role should capital controls play in recovering from the latest economic crisis? Why would or would not these controls benefit a country or the global economy? How?
Why workers(as a class) are structurally disadvantaged on labor markets and what can they do about...
Why workers(as a class) are structurally disadvantaged on labor markets and what can they do about it?
Performance management is important to an organization - why or how? What do you feel are...
Performance management is important to an organization - why or how? What do you feel are the most common mistakes managers make when writing and conducting performance evaluations? How can these mistakes be avoided?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT