Question : Which of the following is not a function of a stock exchange?
Option 1: Facilitating trading of securities
Option 2: Ensuring fair and transparent transactions
Option 3: Regulating the banking sector
Option 4: Providing liquidity to investors
Correct Answer: Regulating the banking sector
Solution : The correct answer is (c) Regulating the banking sector.
Regulating the banking sector is not a function of a stock exchange. Stock exchanges primarily serve as marketplaces where securities such as stocks, bonds, and derivatives are bought and sold. They facilitate the trading of securities between buyers and sellers.
However, regulating the banking sector is typically the responsibility of regulatory bodies such as central banks and financial regulatory authorities. These entities oversee and regulate banks, ensuring their compliance with banking laws, capital requirements, and prudential regulations.
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