Explanation:

- The allocation function involves distributing resources efficiently in an economy.

- Option 1: Financial Market

- Includes both capital and money markets.

- Facilitates liquidity and funds allocation across the economy.

- Option 2: Capital Market

- Provides long-term financing.

- Facilitates allocation of resources for investments which leads to economic growth.

- Option 3: Money Market

- Deals with short-term funding and liquidity.

- Essential for managing short-term cash needs.

- Option 4: All of the above

- Correct as all these markets play a role in resource allocation.

ANSWER: Option 4 - All of the above

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