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?
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
Answer (1)
15th Jan, 2024
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 gives savers the choice of different investments and thus helps to channelise surplus funds into the most productive use.
Hence, option B is correct.
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