Short Note
Justify the following statement.
Financial markets acts as link between investor and borrower.
Advertisement Remove all ads
Solution
- The financial market provides a platform where both, buyers and sellers can find each other easily.
- Investors who have savings are linked with entrepreneurial borrowers that require investment.
- As a result, the idle funds in the hands of investors can be productively used by corporates.
- This market enables investors to invest their saving according to their choices and risk assessment.
- Hence, financial markets acts as link between investor and borrower.
Concept: Types of Financial Market
Is there an error in this question or solution?
Advertisement Remove all ads
APPEARS IN
Advertisement Remove all ads
Advertisement Remove all ads