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Question
Which of the following are the functions of capital market?
Options
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.
MCQ
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Solution
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.
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