Capital Market Primary Learning Outcomes Quiz
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Questions and Answers

What is the function of the capital market in relation to investors and savers?

  • Mobilizing savings and channeling them for productive purposes (correct)
  • Providing short-term investment opportunities
  • Guaranteeing high returns on investments
  • Acting as a regulatory body for financial transactions

What is the main role of the capital market?

  • Ensuring short term liquidity
  • Regulating government bonds
  • Providing a platform for currency exchange
  • Facilitating the raising of long term funds (correct)

What types of securities can be issued in the capital market?

  • Short-term bonds and treasury bills
  • Shares and debentures (correct)
  • Foreign currency and commodities
  • Real estate assets

What is the process of book building related to in the capital market?

<p>Determining the price of securities to be issued (A)</p> Signup and view all the answers

What is the significance of Green Shoe Option in the capital market?

<p>It allows underwriters to issue more shares in an IPO if demand exceeds expectations (D)</p> Signup and view all the answers

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