CUET Preparation Today
"Holders of assets can readily sell their financial assets through the mechanism of the financial market" - This statement highlight one of the functions of financial market. Identify |
Facilitates price discovery Provides liquidity to financial assets Reducing the cost of transactions Mobilisation of earnings and channeling them into the most productive uses. |
Provides liquidity to financial assets |
| Providing Liquidity to Financial Assets: Assets: Financial markets facilitate easy purchase and sale of financial assets. In doing so they provide liquidity to financial assets, so that they can be easily converted into cash whenever required. Holders of assets can readily sell their financial assets through the mechanism of the financial market. |
