Answer» - Savings Mobilization: Obtaining funds from the savers or ‘surplus’ units such as household individuals, business firms, public sector units, Government is an important role played by financial markets.Investment: Financial market plays a key role in arranging the investment of funds thus collected, in those units which are in need of the same.
- Investment: Financial market plays a key role in arranging the investment of funds thus collected, in those units which are in need of the same.
- National Growth: Financial markets contribute to a nation’s growth by ensuring an unfettered flow of surplus funds to deficit units. Flow of funds for productive purposes is also made possible, ft leads to overall economic growth.
- Entrepreneurship Growth: Financial markets contribute to the development of the entrepreneurial class by making available the necessary financial resources.
- Industrial Development: The different components of financial markets help an accelerated growth of industrial and economic development of a country and thus contributing to raising the standard of living and the society’s well-being.
|
