The capital market provides business firms with the avenue to

  • A lease capital equipment
  • B obtain long-term funds
  • C obtain short-term funds
  • D purchase capital equipment
jamb 2004economics

The correct answer is B. obtain long-term funds

The capital market is where long-term financial instruments such as stocks and bonds are traded.

Businesses can raise long-term funds by issuing stocks or bonds to investors in the capital market.

This allows businesses to finance their long-term investment projects and expansion plans.

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