ECONOMICS
FINANCIAL MARKETS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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They link the households which save funds and business firms which invest these funds.
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They work as an intermediary between the savers and the investors by mobilising funds between them.
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They allocate funds available for investment into their most productive investment opportunity.
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All of the above
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Detailed explanation-1: -Which of the following statements is true with regard to financial markets? They work as an intermediary between the savers and the investors by mobilising funds between them.
Detailed explanation-2: -The financial market refers to the market where the sale and purchase of financial products occurs. Such products include stocks, bonds, currencies, derivatives, commodities, cryptocurrencies, etc.
Detailed explanation-3: -Facilitate price discovery, provide liquidity to financing assets and reduce the cost of transaction are all functions of financial markets.
Detailed explanation-4: -Financial Markets include any place or system that provides buyers and sellers the means to trade financial instruments, including bonds, equities, the various international currencies, and derivatives.
Detailed explanation-5: -Explanation:A capital market is a monetary market wherein long-term equity or debt securities are purchased and sold. A capital market is where new issues are made that are bought and sold. The funds are raised for a short period of time is not true in the case of capital markets.