4.4.1 Role of financial markets

Question 1

Role of financial markets: To facilitate saving

Answer 1

One role of the financial markets is to mobilise savings for lending to businesses and individuals.

Question 2

Role of financial markets: To lend to businesses and individuals

Answer 2

One role of the financial markets is to mobilise savings for lending to businesses and individuals.

Question 3

Role of financial markets: To facilitate the exchange of goods and services

Answer 3

One role of the financial markets is to facilitate the exchange of good and services by providing a flat currency.

Question 4

Role of financial markets: To provide forward markets in currencies and commodities

Answer 4

One role of the financial markets is to provide currencies and commodities to reduce risk.

Question 5

Role of financial markets:
To provide a market for equities

Answer 5

One role of the financial markets is to provide market equities to facilitates raising of finances by businesses.