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प्रश्न
State the functions performed by financial market.
State any four functions of financial market.
State the functions of financial market.
उत्तर
Financial market is a common platform where buyers and sellers of securities interact and exchange their holdings of bonds such as shares and debentures. Functions of a financial market:-
i. Channelisation of funds:- Financial markets primarily operate to channelise funds from the investors to the companies. It serves the dual purpose of providing investors with an interest on their funds and providing companies with the required finance to pursue their business operations.
ii. Determining the price:- The determination of fair price of securities is facilitated by financial markets as it provides a place where buyers can meet sellers and undertake different transactions of securities. Such a commonplace ensures trading at a fair and justifiable price of the security which is determined by the opposite forces of demand and supply.
iii. Ease of convertibility in cash:- Because financial markets operate in a transparent and legal manner for the purchase and sale of securities, any person can convert his bonds into cash or cash equivalent at any particular time in a hassle-free manner.
iv. Minimising brokerage and other transaction charges:- Financial markets aim at the minimisation of unnecessary brokerage and transfer charges levied by different dealers by making the relevant information available at all times. It also aims to digitalise the transaction for optimisation in terms of time and cost.
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संबंधित प्रश्न
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(a) commodity
(b) secondary
(c) primary
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A market where short term funds are borrowed and lent.
State, with reasons, whether the following statements are True or False
The financial market contributes towards the nation's economic growth and development.
Distinguish between the following.
Money market and Capital market.
What are the functions of Financial Market?
Match the pairs :
| Group "A" | Group "B" | ||
| 1. | Private placement | a. | Recurring Deposit |
| 2. | N.S.D.L | b. | Dividend |
| 3. | Overdraft facility | c. | Evidence of deposit |
| 4. | Deposit receipt | d. | Interest |
| 5. | Returns on share | e. | Depository out of India |
| f. | A public company collecting capital privately |
||
| g. | Depository in India | ||
| h. | Evidence of ownership | ||
| i. | A private company collecting capital privately |
||
| j. | Current account |
What is financial market? And what is its role?
Select the correct answer from the options given below and rewrite the statement.
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Select the correct answer from the options given below and rewrite the statement.
When the trade bills are accepted by commercial banks it is known as _________.
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
Explain the following term/concept.
Financial market
Answer the following question
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______ market where the company trades shares for the first time.
