Identify the function performed by Financial Market from the following statement: 'Holders of assets can readily sell their financial assets through the mechanism of the financial market.' Option 1: Reduce the cost of transactions Option 2: Provide liquidity to financial assets Option 3: Facilitate price discovery Option 4: Mobilisation of savings and channelising them into the most productive uses

The answer is 'Provide liquidity to financial assets'. View full solution:

CUET Business Studies - Identify the function performed by Financial Market from the following statement: 'Holders of assets can readily sell their financial assets through the mechanism of the financial market.' | PYQs + Solutions

CUET Business Studies

Business Studies

Easy

Reduce the cost of transactions

Provide liquidity to financial assets

Facilitate price discovery

Mobilisation of savings and channelising them into the most productive uses

✅ Correct Option: 2

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"An instrument that helps to mobilise large amounts of money in short period by commercial banks".

Identify the money market instrument stated above :

6 Oct Shift 1

Match list I with list II

LIST I Financial Markets	LIST II Explanation
A. Capital Market	I. It facilitates transfer of investible funds from savers to entrepreneurs, seeking to establish new enterprise
B. Money Market	II. It consists of development banks, commercial banks and stock exchange and facilitate economic development
C. Primary Market	III. Market with low risk, unsecured instruments where assets are close substitutes for cash
D. Secondary Market	IV. It helps existing investors to disinvest and fresh investors to enter market

Choose the correct answer from the option given below:

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"Through this process of disinvestment and reinvestment, savings get channelized into their most productive investment avenues" - which function of stock exchange is highlighted by the given statement?

CUET Business Studies PYQs

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