Which of the following is correct? |
A financial market helps to link the savers and the investors by mobilizing funds between them A financial market performs allocative function. Both 1 and 2 None of the above |
Both 1 and 2 |
A financial market helps to link the savers and the investors by mobilizing funds between them. In doing so it performs what is known as an allocative function. It allocates or directs funds available for investment into their most productive investment opportunity. |