In April 2024, the Kenyan Ministry of Agriculture launched the 'Agritech Growth Fund', allowing smallholder agricultural cooperatives to secure development loans of up to 800,000 KSh (Kenyan Shillings) to purchase automated drip-irrigation systems. These funds are distributed through local cooperative credit unions, which pool the savings of urban retail depositors. To protect these credit unions against systemic agricultural risks (such as droughts), the Kenyan government guarantees 75% of each loan's value.
With reference to the information above, explain one role of financial markets.
21 exam-style questions on Edexcel A A Level Economics 4.4.1 Role of financial markets. Each one has a worked solution and a mark scheme showing where the marks go.