Question

What is a key challenge in mobilising resources through a financial market?

• A. Underdeveloped capital markets and lack of investor confidence.
• B. Excessive government regulation stifling innovation
• C. High inflation rates discouraging long-term investment
• D. Limited access to foreign direct investment due to political instability

Answer 1

Answer:

A. Underdeveloped capital markets and lack of investor confidence.

• To raise resources from financial markets (e.g., through bonds or shares), a country needs a well-functioning market with sufficient depth and a stable political and economic environment to attract investors.