Multiple Choice Questions on Which of the following statements is true with regard to financial markets ........ for Commerce 12th Preparation

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Multiple Choice Questions

Which of the following statements is true with regard to financial markets ........

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    Which of the following statements is true with regard to financial markets?

    They link the households which save funds and business firms which invest these funds.

    Incorrect Answer

    They work as an intermediary between the savers and the investors by mobilising funds between them.

    Incorrect Answer

    They allocate funds available for investment into their most productive investment opportunity.

    Incorrect Answer

    All of the above

    Correct Answer
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    Explanation:

    - Option 1: Financial markets indeed link households that save funds with business firms that require funds for investment. This connectivity is crucial for economic growth.

    - Option 2: They do serve as intermediaries by mobilizing funds between savers and investors, facilitating economic activity and innovation.

    - Option 3: Financial markets play a key role in allocating available investment funds to the most productive opportunities, optimizing economic output.

    - Option 4: All of the above statements accurately describe how financial markets function.

    By: santosh
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    rotimi kayode

    Which of the following statements is not true with regard to primary market? Question 2Answer a. Is not an issues market. b. It facilitates the transfer of investible funds from savers to entrepreneurs c. It deals with new securities being issued for the first time. d. It facilitates the transfer of investible funds from savers to entrepreneurs

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