Question

Through which of the following does a financial market operate?

Options

• Personal, corporate and public finance

• Banks, non-banking financial institutions, brokers, mutual funds and discount houses

• Household savings, price determination, liquidity and transaction cost

• Bonds, stocks, derivatives, government securities and foreign currency

Answer 1

A financial market operates through banks, non-banking financial institutions, brokers, mutual funds and discount houses. These are distinct from the financial assets bought and sold in the market.