Question

Which of the following are the functions of capital market?

विकल्प

• It enables borrowers to obtain needed funds at a reasonable cost.

• It helps investors in earning minimum available return on their funds.

• It brings about an imbalance between demand and supply of capital.

• All of these.

Answer 1

It enables borrowers to obtain needed funds at a reasonable cost.

Explanation:

The capital market mobilises long-term funds from investors and makes them available to borrowers at a reasonable cost. It promotes capital formation and economic growth by efficiently allocating financial resources.