- What important functions do capital markets perform for national and global economies? Why should a country be concerned about the relative strength and performance of its capital markets?
ANSWER:
Capital markets have many functions one of them being recruitment of reserves. Capital markets play a very vital role in mobilizing inactive reserves from the country. People are encouraged to invest their funds in the reproductive channels of the economy. Additionally, money markets aid in capital creation whereby there is an accumulation to the existing store of assets in the market. Capital markets too provide investment avenues since they heave capital for ...
