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Question : In the financial market householders are suppliers of funds and business firms represent the demand.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 9th Jan, 2024
Answer (1)
Team Careers360 23rd Jan, 2024

Correct Answer: Facilitating price discovery


Solution : The forces of demand and supply helps to establish price for a commodity or service in the market. In the financial market householders are suppliers of funds and business firms represent the demand.

Hence, option A is correct.

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