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?
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)
17th Jan, 2024
Correct Answer: Providing liquidity to financial assets
Solution : Financial market facilitate easy purchased and sale of financial assets. Holders of assets can really sell their financial assets to the mechanism of the financial market.
Hence, option C is correct.
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