One of the most important functions of the capital market is to finance the working-capital needs of corporations and to provide government with short-term funds in lieu of tax collections.

Question

Quizplus · Accepted Answer

The primary function of the capital market is to facilitate the raising of long-term funds for corporations and government, not to finance short-term working capital needs or provide short-term government funding. Short-term financing needs are typically met through the money market.

One of the Most Important Functions of the Capital Market