What is the main role of the Australian Stock Exchange?
(A) Conducting a public market in shares and debentures
(B) Buying and selling securities in Australian businesses
(C) Providing prudential supervision of financial institutions
(D) Ensuring investors create economic growth and employment prospects - HSC - SSCE Business Studies - Question 6 - 2006 - Paper 1
Question 6
What is the main role of the Australian Stock Exchange?
(A) Conducting a public market in shares and debentures
(B) Buying and selling securities in Australian bus... show full transcript
Worked Solution & Example Answer:What is the main role of the Australian Stock Exchange?
(A) Conducting a public market in shares and debentures
(B) Buying and selling securities in Australian businesses
(C) Providing prudential supervision of financial institutions
(D) Ensuring investors create economic growth and employment prospects - HSC - SSCE Business Studies - Question 6 - 2006 - Paper 1
Step 1
Conducting a public market in shares and debentures
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Answer
This option refers to the operational aspect of trading, but it does not encompass the broader role of the Australian Stock Exchange (ASX).
Step 2
Buying and selling securities in Australian businesses
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Answer
This is the primary function of the ASX, facilitating the buying and selling of shares, which directly represents its main role.
Step 3
Providing prudential supervision of financial institutions
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Answer
This role is generally associated with regulatory bodies rather than the stock exchange itself, making it an incorrect choice.
Step 4
Ensuring investors create economic growth and employment prospects
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Answer
While the ASX contributes to economic growth indirectly, it is not its main role to ensure this outcome, thus this option is not the best answer.
