Question : A financial market facilitates transfer the savings from savers to investors. Which function of financial market is highlighted in the given statement.
Option 1: Mobilization of savings and channeling them into the most productive uses.
Option 2: Facilitating price discovery
Option 3: Providing liquidity to financial assets
Option 4: Reducing the cost of transactions
Correct Answer: Mobilization of savings and channeling them into the most productive uses.
Solution : Financial market facilitates the transfer of savings from savers to investors. It provides the choice of different investment options to savers, which helps them to invest or channelise their surplus funds into most productive use.
Hence, option A is correct.
Question : Financial market helps to link the savers and the investors by mobilising funds between them. Which function of financial market is highlighted in the given statement?
Question : Financial market facilitate easy purchase and sale of financial assets. Which function of financial market is highlighted in the given statement?
Question : Holders of assets can readily sell their financial assets through the mechanism of the financial market. Which function of the financial market is highlighted in the given statement?
Question : It provide liquidity to financial assets so that they can easily converted into cash whenever required.Which function of financial market is highlighted in the given statement?
Question : It gives savers the choice of different investments and thus helps to channelise surplus funds into the most productive use.Which function of financial market is highlighted in the given statement?
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