Question : Financial market facilitate easy purchase and sale of financial assets. Which function of financial market is highlighted in the given statement?
Option 1: Facilitating price discovery
Option 2: Mobilization of savings and channeling them into the most productive uses
Option 3: Providing liquidity to financial assets
Option 4: Reducing the cost of transactions
Correct Answer: Providing liquidity to financial assets
Solution : Convertibility of financial assets into cash is very easily done through mechanism of the financial markets. They provide liquidity to financial assets.
Hence, option C is correct.
Question : A financial market facilitates transfer the savings from savers to investors. 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 : In the financial market householders are suppliers of funds and business firms represent the demand.Which function of financial market is highlighted in the given statement?
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?
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