CUET Preparation Today
Which of the following statement is correct? |
A business is a part of an economic system that consists of two main sectors-households and business. The households saves funds and business firms invest these funds. A financial market helps to link the savers and the investors by mobilizing funds between them All of the above |
All of the above |
The correct answer is option 4- All of the above. All statements are correct. A business is a part of an economic system that consists of two main sectors – households which save funds and business firms which invest these funds. 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. |
