Role of capital market in resource allocation and capital formation
Answers
Answer:
The purpose of capital markets is to match the supply of funds from investors with the demand for funding from companies and governments. They play animportant role in complementing lending by banks, and allocate capital to where it can be most effectively deployed.
The role of capital markets is vital for inclusive growth in terms of wealth distribution and making capitalsafer for investors. ... Capital market enhances efficient financial intermediation. It increases mobilization of savings and therefore improves efficiency and volume of investments, economic growth and development.
Answer:The purpose of capital markets is to match the supply of funds from investors with the demand for funding from companies and governments. They play animportant role in complementing lending by banks, and allocate capital to where it can be most effectively deployed.
The role of capital markets is vital for inclusive growth in terms of wealth distribution and making capitalsafer for investors. ... Capital market enhances efficient financial intermediation. It increases mobilization of savings and therefore improves efficiency and volume of investments, economic growth and development.
Explanation: