- CFA Exams
- CFA Level I Exam
- Topic 2. Economics
- Learning Module 9. Economic Growth
- Subject 1. Factors Favoring and Limiting Economic Growth in Developed and Developing Economies
CFA Practice Question
Financial markets and intermediaries can promote growth by:
II. facilitating risk transfer and diversification.
III. enhancing liquidity.
IV. mitigating credit constraints.
V. increasing leverage.
I. efficiently allocating savings.
II. facilitating risk transfer and diversification.
III. enhancing liquidity.
IV. mitigating credit constraints.
V. increasing leverage.
Correct Answer: I, II, III and IV
Increasing leverage will not necessarily increase long-run growth.
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