Understanding Stock Markets and Volatility
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Questions and Answers

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.

<p>The recent global financial crisis.</p> Signup and view all the answers

What are the potential benefits of exports for a country?

<p>Generating revenue, creating jobs, and improving a country's trade balance.</p> Signup and view all the answers

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