"A financial market is for the creation and exchange of financial asssets." Which of the following are the functions of a financial market?
A
Providing liquidity to financial assets.
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B
Facilitating price discovery.
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C
Mobilisation of savings and channeling them into the most productive use.
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D
All of the above.
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Solution
The correct option is D All of the above. The functions of financial markets are: 1. Mobilisation of savings and channelling them into more productive uses 2. Facilitating price discovery 3. Providing liquidity to financial assets