Economics · Bond Market
What is a primary objective of developing a resilient and efficient corporate bond market?
- 1To ensure strict government control over capital allocation across all private enterprises.
- 2To decrease the absolute number of active institutional investors to enhance stability.
- 3To lower funding costs for corporations by eliminating disintermediation and high intermediation costs.✓
- 4To provide short-term investment options for speculative investors.
Correct answer
To lower funding costs for corporations by eliminating disintermediation and high intermediation costs.
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