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?
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
Answer (1)
11th Jan, 2024
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.
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