CUET CUET Business Studies 2024 - Identify the function performed by Financial Market from the following statement: 'Holders of assets can readily sell their financial assets through the mechanism of the financial market.' | PYQs + Solutions | AfterBoards
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CUET Business Studies 2024

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Financial Markets

Easy

Identify the function performed by Financial Market from the following statement: 'Holders of assets can readily sell their financial assets through the mechanism of the financial market.'

Correct Option: 2
    \newline
  1. Reduce the cost of transactions → Lowers expenses for trading.
    2. \newline
  2. Provide liquidity to financial assets → Enables quick asset sales.
    3. \newline
  3. Facilitate price discovery → Helps determine asset values.
    4. \newline
  4. Mobilisation of savings → Channels funds to productive uses.
    5. \newline
\newline Correct answer: 2 - Financial markets allow asset holders to sell quickly, ensuring liquidity.

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