Practicing Success

Target Exam

CUET

Subject

Entrepreneurship

Chapter

Resource Mobilisation

Question:
Which of the following is/are a function(s) of Capital Market?
Options:
Mobilize the financial resources on a nation-wide scale.
Secure the required foreign capital and know-how to promote economic growth at a faster rate.
Ensure the most effective allocation of the mobilized financial resources by directing the same either to such projects which are capable of the highest yield or to the underdeveloped priority areas where there is an urgent need to promote balanced and diversified industrialization.
All of the above.
Correct Answer:
All of the above.
Explanation:
Capital markets are the most important source of raising finance for the entrepreneurs as this market can: a) Mobilize the financial resources on a nation-wide scale. b) Secure the required foreign capital and know-how to promote economic growth at a faster rate. c) Ensure the most effective allocation of the mobilized financial resources by directing the same either to such projects which are capable of the highest yield or to the underdeveloped priority areas where there is an urgent need to promote balanced and diversified industrialization.