Which of the following is NOT a function of the financial market?

• A financial market facilitates the transfer of savings from investors to savers.
• Determination of a price for the financial asset with the help of market forces of demand and supply.
• Financial markets increase the cost of transactions due to "n" number of securities being traded in the market.
• It facilitates the easy purchase and sale of financial assets.

1 and 3

The correct answer is Option 4: 1 and 3

• Statement 1: “Transfer of savings from investors to savers” →  Incorrect. Financial markets transfer funds from savers to investors, not the other way round.
• Statement 2: Price determination through demand and supply → Correct function. Financial markets help in price discovery.
• Statement 3: Increase the cost of transactions → Incorrect. Financial markets actually reduce transaction costs by providing liquidity and easy access.
• Statement 4: Facilitates easy purchase and sale → Correct function. This refers to liquidity, which is a key function.