ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Explanation: The allocation function of all securities is performed by all financial markets, capital markets, and money markets. These markets allocate securities such as stocks, shares, and debentures to their investors.

Detailed explanation-2: -Function allocation is a central component of systems engineering and its main aim is to provide a rational means of determining which system-level functions should be carried out by humans and which by machines. Such allocation, it is assumed, can take place early in design life cycle.

Detailed explanation-3: -Financial Markets have different roles to play, including price determination, funds mobilization, risk sharing, easy access, liquidity, capital formation, reduction in transaction costs, provision of the required information, etc.

Detailed explanation-4: -1 Answer. (a) The rate of return offered to the investors would be higher.

Detailed explanation-5: -Facilitate price discovery, provide liquidity to financing assets and reduce the cost of transaction are all functions of financial markets.