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Why is a well-developed capital market important for capital formation?
  • a)
    It eliminates the need for government intervention in investment
  • b)
    It discourages entrepreneurs from investing in risky projects
  • c)
    It ensures efficient mobilization and transfer of savings for investment
  • d)
    It promotes excessive government borrowing
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Why is a well-developed capital market important for capital formation...
A well-developed capital market facilitates the efficient mobilization and transfer of savings from individual investors, banks, investment trusts, and other financial institutions to entrepreneurs and businesses that require funds for investment. This ensures that the resources saved by households are directed towards productive investment activities.
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Why is a well-developed capital market important for capital formation?a)It eliminates the need for government intervention in investmentb)It discourages entrepreneurs from investing in risky projectsc)It ensures efficient mobilization and transfer of savings for investmentd)It promotes excessive government borrowingCorrect answer is option 'C'. Can you explain this answer?
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Why is a well-developed capital market important for capital formation?a)It eliminates the need for government intervention in investmentb)It discourages entrepreneurs from investing in risky projectsc)It ensures efficient mobilization and transfer of savings for investmentd)It promotes excessive government borrowingCorrect answer is option 'C'. Can you explain this answer? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Why is a well-developed capital market important for capital formation?a)It eliminates the need for government intervention in investmentb)It discourages entrepreneurs from investing in risky projectsc)It ensures efficient mobilization and transfer of savings for investmentd)It promotes excessive government borrowingCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Why is a well-developed capital market important for capital formation?a)It eliminates the need for government intervention in investmentb)It discourages entrepreneurs from investing in risky projectsc)It ensures efficient mobilization and transfer of savings for investmentd)It promotes excessive government borrowingCorrect answer is option 'C'. Can you explain this answer?.
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