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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?

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


 


Team Careers360 5th Jan, 2024
Answer (1)
Team Careers360 11th Jan, 2024

Correct Answer: Providing liquidity to financial assets


Solution : Convertibility of financial assets into cash is very easily done through mechanism of the financial markets. They provide liquidity to financial assets.

Hence, option C is correct.

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