ECONOMICS
FINANCIAL MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Mobilization of savings
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Price fixation
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Provide liquidity to financial assets
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All of the above
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Detailed explanation-1: -Facilitate price discovery, provide liquidity to financing assets and reduce the cost of transaction are all functions of financial markets.
Detailed explanation-2: -The correct answer is (A) bringing together people with funds to lend and people who want to borrow funds. The financial market has a primary function of bringing savers and borrowers together.
Detailed explanation-3: -Functions of Financial Market Financial Markets helps in mobilizing savings, determining and settling the prices of various securities, providing liquidity to assets, and easing access to all types of traders.
Detailed explanation-4: -Financial markets play a vital role in facilitating the smooth operation of capitalist economies by allocating resources and creating liquidity for businesses and entrepreneurs. The markets make it easy for buyers and sellers to trade their financial holdings.
Detailed explanation-5: -Stock market. The stock market trades shares of ownership of public companies. Bond market. The bond market offers opportunities for companies and the government to secure money to finance a project or investment. Commodities market. Derivatives market. 20-Feb-2023