Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Financial Markets

Question:
Which of the following is correct?
Options:
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
Correct Answer:
Both 1 and 2
Explanation:
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.