According to the Wall Street Journal, the Financial Market of an economy is very important to the development of that countrys economy. Countries with poorly organized and inefficient Financial Market, usually also have their economies underdeveloped and their population living in poverty. The Financial Market is a very important mechanism for the rational allocation of resources in the economy. One of the major components of the Financial Market is the Stock Exchange (Stock Market) in an economy. The Stock Exchange is a trading system that consists of brokers and dealers around the country. The Finance Minister of an underdeveloped country in Latin America would like the following questions answered:

A. Critically assess the functions of the Jamaica Stock Exchange in relation to the economy (10 marks)

B. Discuss FIVE (5) basic functions of the financial market in a capitalist economy (10 marks) (Total 20 marks)