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Questions and Answers
What is the primary purpose of financial markets?
What is the primary purpose of financial markets?
To act as intermediaries, channeling savings into productive investments.
How do financial markets influence the price of financial assets?
How do financial markets influence the price of financial assets?
Prices are determined by the balance of supply and demand for those assets.
What is the primary function of a capital market?
What is the primary function of a capital market?
The primary function of a capital market is to channel savings into investments or productive uses.
Name two instruments used in capital markets.
Name two instruments used in capital markets.
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What does liquidity in financial markets refer to?
What does liquidity in financial markets refer to?
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What is one benefit of financial markets in terms of investor research?
What is one benefit of financial markets in terms of investor research?
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How does a capital market serve savers and borrowers?
How does a capital market serve savers and borrowers?
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What types of funds are traded in the capital market?
What types of funds are traded in the capital market?
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What are the two main segments of financial markets?
What are the two main segments of financial markets?
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What is meant by the term 'productive assets' in the context of capital markets?
What is meant by the term 'productive assets' in the context of capital markets?
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