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प्रश्न
Answer the following question.
How does Financial Market facilitate the 'Price Discovery' of financial assets?
उत्तर
In financial markets, there are two players i.e. the households and the business firms. Here the households act as the suppliers of funds and the business firms make the demand. Now, we know that the price is determined when demand meets supply, so in such markets as well, wherever the demand meets supply, the price for that financial asset that is being traded-in that market is determined.
संबंधित प्रश्न
The market where existing securities are resold or traded is called __________ market.
(a) commodity
(b) secondary
(c) primary
Distinguish between Primarymarket and Secondary Market.
State the functions performed by financial market.
Today, the development of a country is also judged by its system of transferring finance from the sector where it is in surplus to the sector where it is needed the most. To give strength to the economy SEBI is undertaking measures to develop the capital market. In addition to this, there is another market in which unsecured and short-term debt instruments are actively traded every day. These markets together help the savers and investors in allocating the available funds into their most productive investment opportunity.
1)Name the function being performed by the market in the above case.
2) Also, explain three other functions performed by this market.
Helpequip Ltd. is a company dealing in distribution of medical equipments. The company recently imported 500 units of a diabetes monitoring machine which tests the sugar levels without taking blood samples. For deciding the marketing strategy, the Chief Executive Officer of the company called a meeting of the marketing heads of different zones. In the meeting, Sanjeev, the North Zone marketing head suggested that they need to visit hospitals to explain personally to the hospital staff who would be using the machine since the machine is sophisticated. He also suggested that additional staff may also be recruited for the same.
Rishu, another zonal head, was of this opinion that since a large amount of money had been spent on the purchase of the machines, additional funds were not available for recruiting the personnel as suggested by Sanjeev.
Ankur, a newly appointed zonal head of South Zone, suggested that since the size of the
order was not large, a detailed study of the factors determining the choice of channels of distribution was required before making the right choice.
1) Identify the factors influencing the choice of channels of distribution which were discussed in the meeting.
2) Also, explain the other considerations to be taken care of in each factor identified in part (a).
The financial market plays an important role in the allocation of scarce resources in an economy by performing many important functions.’ Explain any three such functions
Bharat Express specialises in Courier Services. Its 'wide range of express package and parcel services' help business firms to make sure that the goods are made available to the customers at the right place and at the right time. A state with reason, whether the working capital requirements of 'Bharat Express' will be high or low
Distinguish between the following.
Money market and Capital market.
What are the functions of Financial Market?
Answer the following question.
What is meant by the 'Allocative Function' of Financial Markets?
Select the correct answer from the options given below and rewrite the statement.
____________ is the market for borrowing and lending long term capital required by business enterprises.
Write a word or a term or a phrase which can substitute the following statement.
A market where people trade financial securities and derivatives at low transaction cost
State whether the following statement is true or false
A Financial Market is a market in which people trade financial securities and derivatives at high transaction costs.
Answer in brief.
State any four functions of the financial market.
What are the functions of a financial market?
______ is short-term finance repayable on demand, with a maturity period of one day to fifteen days.
Which of the following statements is incorrect regarding Financial Markets?
Full form of IFCI
