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Question : Holders of assets can readily sell their financial assets through the mechanism of the financial market. Which function of the 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 4th Jan, 2024
Answer (1)
Team Careers360 17th Jan, 2024

Correct Answer: Providing liquidity to financial assets


Solution : Financial market facilitate easy purchased and sale of financial assets. Holders of assets can really sell their financial assets to the mechanism of the financial market.

Hence, option C is correct.

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