Stock market impart liquidity to investment. Explain briefly

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Solution

The given statement is true. Money invested in the securities and bonds in a stock exchange can be converted into cash at any point of time when the exchange opens. The transactions take place electronically which further increases the speed of transactions. Therefore, the stock market imparts liquidity or convertibility into cash to the investments.

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'Stock market imparts liquidity to investment.' Comment.

Briefly explain the role of buffer stocks in the context of agricultural marketing.

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(i) Information dissemination

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(iii) Provides liquidity

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