Business Studies

Financial Markets

Easy

The following is not an important function of the Financial Market:

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

Not providing liquidity to financial assets.

Reducing the cost of transactions.

Facilitating price discovery.

✅ Correct Option: 2

Financial markets perform four functions: mobilising savings into productive uses, facilitating price discovery, providing liquidity to financial assets so they can be easily converted into cash, and reducing the cost of transactions. Option 2 negates the liquidity function, so it is not a function of the financial market.

2026: 13 May Shift 2

The steps followed in the screen-based trading for buying and selling of securities are:

(A) The investor has to open a demat account with a depository participant for holding and transferring securities in demat form.

(B) The investor places an order with the broker to buy or sell shares.

(D) The broker issues a contract note within 24 hours after the trade has been executed.

Choose the correct answer from the options given below:

2023: 11 June Shift 3

Identify, which of the following is not an objective of SEBI.

2026: 29 May Shift 2

Which of the following is not the function of financial markets:

2026: 12 May Shift 1

Which of the following was Asia's first Stock Exchange?

2023: 22 June Shift 1

"An instrument that works as a replacement towards bank borrowing for large Credit-worthy companies, its maturity period is 15 days to one year".

Identify the money market instrument stated in the above lines.

2026: 13 May Shift 1

The government and the stock exchange were rather helpless in addressing the investors' problems because of the lack of proper penal provisions in the existing legislation, so it was decided to set up a regulatory body known as:

The following is not an important function of the Financial Market:

Solution

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