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What is the role of the financial market?

There are several roles played by the financial markets. Financial markets help the government in raising funds by letting them borrow at a lower rate of interest. Financial markets help in the growth of the economy. You can read about the Financial Market – Functions, Features, Difference between Money and Capital Market in the given link.

It provides a mechanism for an investor to sell the financial assets, and provides security to dealings in financial assets.

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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