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प्रश्न
State, with reasons, whether the following statements are True or False
The financial market contributes towards the nation's economic growth and development.
उत्तर
The financial market contributes towards the nation's economic growth and development. This statement is True.
Reasons :
- The place where people and institutions borrow money are brought together with those having surplus funds, which is called a Financial Market.
- The financial market contributes to national growth by facilitating the continuous flow of surplus fund to business enterprises (sick and deficit units) through its allocative function ensuring a higher rate of return to the savers/household by investing the scarce resources in the enterprises having higher productivity, increasing the rate of capital formation.
- The financial market contributes a lot to the development of the entrepreneurial class by financing their business requirements. It obtains funds from individual households private and public sector units, Central govt. etc. and supply these funds to those business units who need it for productive purposes.
- The components of the Financial Market is the money market and capital market. It helps in accelerating the rate of industrial and economic development of the country. As a result, the standard of living and social welfare goes up. Thus, the Financial market contributes towards the growth and development of the nation.
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संबंधित प्रश्न
Distinguish between Primarymarket and Secondary Market.
State the functions performed by financial market.
These days, 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 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 directing 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 briefly three other functions performed by this 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.
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
A market where short term funds are borrowed and lent.
What are the functions of Financial Market?
Write a word or a term or a phrase which can substitute the following statement :
A definite promise in writing from a buyer for paying the amount on a specific Date.
What is financial market? And what is its role?
Answer the following question.
What is meant by the 'Allocative Function' of Financial Markets?
Answer the following question.
How does Financial Market facilitate the 'Price Discovery' of financial assets?
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
Find the odd one.
Explain the following term/concept.
Capital market
Distinguish between the following.
Primary market and Secondary market
Answer in brief.
State any four functions of the financial market.
Vansh Limited is a large and reputed company which manufactures ventilators. After the outbreak of ‘COVID-19’ in 2020 the company witnessed an increase in revenue by 40%. It has plans to further increase its production capacity and also start production of PPE kits, sanitisers and masks in 2022. The Finance manager of the Company Mr. Rajiv feels confident about the future of the company and its liquidity position. Discuss the meaning of Dividend Decision and in the light of the above statement explain any two factors which should be considered by ‘Vansh Limited’ while formulating the dividend policy of the company.
What are the functions of a financial market?
In order to get feedback about its recently launched immunity-boosting ayurvedic medicine, Atulya Limited conducted an online survey using a questionnaire, to gather customer views and opinions. Identify the marketing function being used by Atulya Limited.
Match the FUNCTIONS of Financial Markets in Column I with their correct MEANING in Column II
| Column I | Column II | ||
| (a) | Allocated Function | (i) | Establish a price for the financial asset through interaction between house-holds and business firms. |
| (b) | Facilitating Price Discovery | (ii) | Easy purchase and sale of financial assets. |
| (c) | Financial Assets Liquidity | (iii) | Mobilization of savings and channelising them into the most productive use. |
______ is short-term finance repayable on demand, with a maturity period of one day to fifteen days.
Tractors Pvt. Ltd. producing 2,00,000 trucks and generating revenue of Rs. 2,000 crores annually, has recently acquired the world's second largest truck manufacturing company. After this acquisition, Tractors Pvt. Ltd. will become the world's largest truck manufacturer. For financing the acquisition, the company had to arrange about Rs. 1,00,000 crores through debt and equity. ______ function is being performed by the company for arranging the funds through debt and equity.
What is meant by the financial market?
Study the following case/situation and express your opinion.
| Jack & Jones, a newly incorporated organization wants to raise capital for the first time by issuing equity shares. |
- Should it go for Primary Market or the Secondary Market?
- What will be the issue of equity shares by Jack & Jones called?
______ market where the company trades shares for the first time.
