Explain the importance of markets.
Answers
Answer:
Markets are important. They are the mechanism through which shares in companies are bought and sold, and they give businesses access to cash. Markets are critical in price formation, liquidity transformation and allowing firms to service the needs of their clients.
Explanation:
Answer:
In ordinary speech, the term ‘market’ refers to a place where buyers and sellers meet for transactions, e.g., Vardaan Market of Calcutta, Palika Bazar of New Delhi, Crawford Market of Mumbai and so on. But in economics it is used in a different sense.
In economics, the term ‘market’ does not mean a particular palace, rather it refers to a particular commodity which is bought and sold, e.g., the rice market, the cloth market, the gold market and so on. It is used to indicate a commodity or service as also their buyers and sellers who are in direct competition with one another. So, a market consists of a group of buyers and sellers in sufficiently close contact with one another for exchange to take place among them.