Question : Which concept of Financial Market is highlighted in the given statement? Statement: Through the medium of Financial Market finance gets transferred from the supply side to the demands side.
Option 1: Allocative function of financial market
Option 2: Distribution function of financial market
Option 3: Both A and B
Option 4: None of the above
Correct Answer: Allocative function of financial market
Solution : Various factors of demand and supply full fill the demand and supply of finance. The financial market combines both the sides. Through the medium of Financial Market finance get transferred from the supply side to the demand side. This activities known as allocative function of financial market.
Hence, option A is correct.
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