5 Questions
What role do stock markets play in the financial system?
They provide finance to sectors in need, support the private sector, and help in sharing risk.
How do stock exchanges respond to various events and factors?
Stock exchanges act as a yardstick or barometer that respond to various events and factors, both national and international.
What impact can negative volatility have on stock markets?
Negative volatility can affect decision-making and lead some investors to leave the market.
Give an example of a major event that had a significant impact on stock markets.
The recent global financial crisis
What is the significance of exports for a country's economy?
Exports generate revenue, create jobs, and improve a country's trade balance.
Explore the significance of stock markets in the economy and their impact on the financial system. Understand the role of stock exchanges as indicators of economic events and factors.
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