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Question : Financial market helps to link the savers and the investors by mobilising funds between them. Which function of financial market is highlighted in the given statement?

Option 1: Facilitating price discovery

Option 2: Mobilization of savings and channeling them into the most productive uses

Option 3: Providing liquidity to financial assets

Option 4: Reducing the cost of transactions


 


Team Careers360 3rd Jan, 2024
Answer (1)
Team Careers360 15th Jan, 2024

Correct Answer: Mobilization of savings and channeling them into the most productive uses


Solution : Financial market facilitates the transfer of savings from savers to investors. It gives savers the choice of different investments and thus helps to channelise surplus funds into the most productive use.

Hence, option B is correct.

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