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?
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)
23rd Jan, 2024
Correct Answer: Facilitating price discovery
Solution : The forces of demand and supply helps to establish price for a commodity or service in the market. In the financial market householders are suppliers of funds and business firms represent the demand.
Hence, option A is correct.
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