Question

Statement-I: The basic function of a Stock Exchange is the creation of a continuous market where securities are bought and sold.

Statement-II: The Stock Exchange provides both liquidity and easy marketability to already existing securities in the market. 

Options

• Statement-I is true and Statement-II is false.

• Statement-II is true and Statement-I is false.

• Both the Statements are true.

• Both the Statements are false.

Answer 1

Both the Statements are true.

Explanation:

While Statement II highlights how stock exchanges give existing securities liquidity and marketability, Statement I highlights the fundamental role of a stock exchange as establishing a continuous market for the purchase and sale of securities.