Question : It gives savers the choice of different investments and thus helps to channelise surplus funds into the most productive use.Which function of financial market is highlighted in the given statement?
Option 1: Mobilization of savings and channeling them into the most productive uses.
Option 2: Facilitating price discovery
Option 3: Providing liquidity to financial assets
Option 4: Reducing the cost of transactions
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 provides the choice of different investment options to savers, which helps them to invest or channelise their surplus funds into most productive use.
Hence, option A is correct.
Question : It provide liquidity to financial assets so that they can easily converted into cash whenever required.Which function of financial market is highlighted in the given statement?
Question : It provide valuable information about securities being traded in the market. Which function of financial market is highlighted in the given statement?
Question : It is a common platform where buyers and sellers can meet for fullfilment of their individuals needs. 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 use
Option 3: Reducing the cost of transactions
Option 4: Providing liquidity to financial assets
Question : It has to save time effort and money that both buyers and sellers of financial asset would have to spend to try and find each other. Which function of financial market is highlighted in the given statement?
Option 2: Mobilization of savings and channelizing them into the most productive uses
Question : Which function of financial market is highlighted in the given statement? Statement: It takes the uselessly lying finance in the form of cash to places where it is really needed.
Option 1: Mobilization of savings and channelising them into most productive use
Option 2: Facilitates price discovery
Option 3: Provides liquidity to financial assets
Option 4: Reduce the cost of transactions
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