Question

Q7. Which of the following is the function of financial market?​

Answer 1

Answer:

Financial Markets have different roles to play which include price determination, funds mobilization, risk sharing, easy access, liquidity, capital formation and reduction in transaction costs and provision of the required information,

Answer 2

Financial market:

• The financial market connects savers with loans.

• This market distributes funds or capital from individuals with excess funds to those who require investment.

The function of financial market:

• Financial markets play a variety of roles, including transaction cost reduction, capital formation, liquidity, simple access, risk sharing, fund mobilization, provision of the necessary information, and price setting, among others.