Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Financial Markets

Question:

Which one of the following is NOT the function of Financial Market ? 

Options:

Facilitating Price Discovery 

Composition of long term and short term funds 

Mobilisation of savings and channeling them into the most productive uses 

Providing the liquidity to Financial assets

Correct Answer:

Composition of long term and short term funds 

Explanation:
Financial markets play an important role in the allocation of scarce resources in an economy by performing the following four important functions.
Mobilisation of Savings and Channeling them into the most Productive Uses, Facilitating Price Discovery, Providing Liquidity to Financial Assets and Reducing the Cost of Transactions.