Ethiopia's Securities Exchange Readiness and Gaps
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Questions and Answers

What is the purpose of establishing a securities exchange in a modern financial system?

  • To provide a platform for trading commodities and goods
  • To enable companies to raise capital through issuing shares and bonds (correct)
  • To establish a centralized system for currency exchange
  • To regulate the prices of essential goods and services

Why is careful planning and meeting certain preconditions necessary for the successful launch and operation of a securities exchange?

  • To guarantee that investors will always profit from their investments
  • To prevent market manipulation and insider trading (correct)
  • To ensure that the exchange is not affected by changes in the global economy
  • To establish a platform for trading agricultural commodities

What is the primary goal of Ethiopia as it continues its economic reform process?

  • To create a centralized system for currency exchange
  • To establish a securities exchange for cryptocurrencies
  • To transition to a market-based economy (correct)
  • To regulate the prices of essential goods and services

What does the essay aim to analyze regarding the establishment of a securities exchange in Ethiopia?

<p>The readiness and existing gaps in establishing the exchange (D)</p> Signup and view all the answers

Why is establishing a securities exchange considered an important goal for Ethiopia's economic reform process?

<p>To provide a platform for companies to raise capital through issuing securities (B)</p> Signup and view all the answers

What is a key precondition for establishing a securities exchange, according to the text?

<p>A developed commercial banking sector (B)</p> Signup and view all the answers

What is one of the requirements for a securities exchange in terms of the economy?

<p>Market-driven economy (B)</p> Signup and view all the answers

What is considered essential for an autonomous securities regulator, as per the text?

<p>Strong legal and regulatory framework (B)</p> Signup and view all the answers

What is necessary for a securities exchange in terms of trading infrastructure?

<p>Modern trading, settlement, and depository infrastructure (A)</p> Signup and view all the answers

According to the text, what is one of the gaps in Ethiopia's readiness for establishing a securities exchange?

<p>Corporate sector lacks capacity in assets, corporate governance, investor relations, and financial reporting (B)</p> Signup and view all the answers

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