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What is the financial market and its function?

Financial Market refers to the system consisting of financial institutions, financial instruments, regulatory bodies, and organisations. You can read about the Financial Market – Functions, Features, Difference between Money and Capital Market in the given link.

Financial market facilitates traders to buy and sell financial instruments and securities. The functions of the Financial market includes reduction in transaction costs, risk sharing, liquidity, easy access, capital formation, funds mobilization, and price determination.

Further readings:

  1. Capital Markets – Types, Examples, Features, Structure, Functions, and Advantages
  2. Demand and Supply – Concepts of Economy for UPSC

Related Links

Fiscal Deficit – Calculation, Components, Policy Framework

Monetary System – Types of Monetary System (Commodity, Commodity-Based, Fiat Money)

Monetary Policy – Objectives, Roles and Instruments (UPSC Indian Economy)

Inflation in Economy- Types of Inflation, Inflation Remedies [UPSC Notes]

Economic Survey 2021 – Definition, Importance & Highlights

Fiscal Policy in India – Objectives, Components, Fiscal Consolidation, FRBM Act, 2003

Indian Economy Notes For UPSC Exam [Download PDFs]

Union Budget 2021 – An Overview of Proposals on Six Different Pillars

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