Maharashtra State BoardHSC Commerce 12th Board Exam
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Justify the following statement. Financial markets acts as link between investor and borrower. - Secretarial Practice

Short Note

Justify the following statement.
Financial markets acts as link between investor and borrower.

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Solution

  1. The financial market provides a platform where both, buyers and sellers can find each other easily.
  2. Investors who have savings are linked with entrepreneurial borrowers that require investment.
  3. As a result, the idle funds in the hands of investors can be productively used by corporates. 
  4. This market enables investors to invest their saving according to their choices and risk assessment.
  5. Hence, financial markets acts as link between investor and borrower.
Concept: Types of Financial Market
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APPEARS IN

Balbharati Secretarial Practice 12th Standard HSC Maharashtra State Board
Chapter 11 Financial Market
Exercise | Q 6.1 | Page 169
SCERT Maharashtra Question Bank 12th Standard HSC Secretarial Practice Maharashtra State Board 2021
Chapter 11 Financial Market
Justify the following statements | Q 1
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