Question : Which feature of capital market is highlighted in the given statement? Statement: The chief function of the capital market is to provide a platform for the sale and purchase of securities.
Option 1: Creating liquidity
Option 2: Capital formation
Option 3: Trade off functions
Option 4: None of the above
Correct Answer: Creating liquidity
Solution : Capital market helps in creating liquidity.The chief function of the capital market is to provide a platform for the sale and purchase of securities. Therefore this market helps in creating liquidity in securities.
Hence, option A is correct.
Question : Which of the following statement is correct? Statement 1: The increase in the investments in the country is called capital formation. Statement 2: The chief function of the capital market is to provide a platform for the sale and purchase of securities.
Option 1: Both are true
Option 2: Both are false
Option 3: Statement 1 is true and statement 2 is false.
Option 4: Statement 1 is false and statement 2 is true.
Question : Which function of stock exchange is highlighted in the given statement? Statement: It is a market place where previously issued securities are traded.
Option 1: Providing liquidity and marketablity to existing securities
Option 2: Pricing of securities
Option 3: Safety of transactions
Option 4: Contributes to economic growth
Question : Which concept of Financial Market is highlighted in the given statement? Statement: Through the medium of Financial Market finance gets transferred from the supply side to the demands side.
Option 1: Allocative function of financial market
Option 2: Distribution function of financial market
Option 3: Both A and B
Question : Financial market facilitate easy purchase and sale of financial assets. 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
Question : Which function of packaging is highlighted in the given statement? Statement: It makes the identification of a product easy.
Option 1: Product identification
Option 2: Product protection
Option 3: Product promotion
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