Question 28
Stock ExchangeThe Stock Exchange helps to provide capital for industrial projects because it
- A.determines value of shares, stocks and other securities
- B.assists government in implementing its monetary policies
- C.assists companies to change their securities into cash
- D.renders agency services to organisations and governments.
Show the answer and explanation
Answer: C (assists companies to change their securities into cash)
Explanation
Because securities can easily be turned into cash on the Stock Exchange, people are willing to buy them, so companies can raise capital.