Understanding Stock Markets and Volatility

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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 act as a yardstick or barometer?

They respond to various events and factors, both national and international.

What impact can negative volatility have on stock markets?

It can affect decision-making and lead some investors to leave the market.

Give an example of an event that can have a significant impact on stock markets.

The recent global financial crisis.

What are the potential benefits of exports for a country?

Generating revenue, creating jobs, and improving a country's trade balance.

This quiz explores the role of stock markets in the financial system, their impact on the economy, and the influence of events and factors on market performance and investor confidence.

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