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प्रश्न
What are the functions of Financial Market?
उत्तर
A financial market refers to the market where the creation and exchange of financial assets such as shares and debentures takes place. The following are the functions of a financial market.
1. Transfer of Savings and Alternatives for Investment
A financial market acts a link between the savers and the investors. It provides a platform for the transfer of savings from the households to the investors. It also provides savers with various alternatives for investment and thereby, directs the funds to the most productive investment.
2. Establishes the Price
Similar to a commodity, the price of a financial asset is established through the forces of demand and supply for funds. Financial market provides a platform for the interaction of the demand of the funds (represented by the business firms) and the supply of funds (represented by the households). Thereby, it helps in determining the price of the asset being traded.
3. Facilitates Liquidity
An asset or a security can be easily purchased and sold in a financial market. This renders liquidity to the assets. That is, through trading in the financial market assets can be easily converted into cash or cash equivalents.
4. Reduced Cost of Transaction
By rendering information regarding the securities being traded, their price, availability, etc., a financial market helps in reducing the cost of transaction in terms of effort, money and time.
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संबंधित प्रश्न
Distinguish between Primarymarket and Secondary 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.
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
A market where short term funds are borrowed and lent.
Distinguish between the following.
Money market and Capital market.
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?
Answer the following question
State the features of capital market.
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.
______ is short-term finance repayable on demand, with a maturity period of one day to fifteen days.
Which of the following statements is false regarding financial market?
Which of the following statements is incorrect regarding Financial Markets?
Full form of IFCI
Match the various terms of Financial Markets Column - I with their respective Statements in Column - II
| Column - I | Column - II | ||
| a. | Financial market | i | It is also known as the Stock market |
| b. | Primary market | ii | It is a market for creation and exchange of financial assets. |
| c. | Secondary market | iii | It is also known as New issue market |
What is meant by the financial market?
______ market where the company trades shares for the first time.
