- CFA Exams
- CFA Level I Exam
- Study Session 4. Economics
- Reading 11. Economic Growth and the Investment Decision
- 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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