Business Studies

Financial Markets

Easy

"Holders of assets can readily sell their financial assets through the mechanism of the financial market" - This statement highlight one of the functions of financial market.

Identify

Facilitates price discovery

Provides liquidity to financial assets

Reducing the cost of transactions

Mobilisation of earnings and channeling them into the most productive uses.

✅ Correct Option: 2

The ability of holders to readily convert their financial assets into cash by selling them through the market is the essence of liquidity. Hence, the function highlighted is Provides liquidity to financial assets.

2022: 15 July Shift 2

"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?

2026: 21 May Shift 2

The regulatory function of SEBI is:

2026: 29 May Shift 2

The following was not the objective of setting up the Bombay Stock Exchange:

2022: 15 July Shift 2

Treasury Bills are issued by

2022: 20 Aug Shift 1

The process of holding securities in an electronic form is known by a specific term. Identify the term.

2026: 23 May Shift 2

"A privilege given to existing shareholders to subscribe to a new issue of shares according to the terms and conditions of the company".

Identify the method of flotation from this statement.

"Holders of assets can readily sell their financial assets through the mechanism of the financial market" - This statement highlight one of the functions of financial market. Identify

Solution

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CUET Business Studies Past Year Questions (Topic-Wise)

"Holders of assets can readily sell their financial assets through the mechanism of the financial market" - This statement highlight one of the functions of financial market.

Identify