InterviewSolution
Saved Bookmarks
InterviewSolution
| 1. |
“A financial market is for the creation and exchange of financial assets.” Explain any two of its functions. |
|
Answer» Functions of Financial Market: 1. Mobilisation of Savings and their Channellisation into more Productive Uses: Financial market gives impetus to the savings of the people. This market takes the uselessly lying finance in the form of cash to places where it is really needed. Many financial instruments are made available for transferring finance from one side to the other side. The investors can invest in any of these instruments according to their wish. 2. Facilitates Price Discovery: The price of any goods or services is determined by the forces of demand and supply. Like goods and services, the investors also try to discover the price their securities. The financial market is helpful to the investors in giving them proper price. |
|