Some economists argue that well-functioning capital markets that allow funds to move from those who have but do not need funds to those who need but do not have funds, are essential for rapid economic growth. Well-functioning capital markets are an example of:
A)physical capital.
B)human capital.
C)growth-compatible institutions.
D)entrepreneurship.

Question

Quizplus · Accepted Answer

Well-functioning capital markets are considered growth-compatible institutions because they facilitate the efficient allocation of resources, enabling funds to flow from savers to borrowers who can invest in productive ventures, thereby promoting economic growth. They are not physical capital (tangible assets used in production), human capital (skills and knowledge of individuals), or entrepreneurship (the process of starting new businesses).

Some Economists Argue That Well-Functioning Capital Markets That Allow Funds