Question

Which set lists the main functions of a financial market?

Options

• Banks, brokers, mutual funds and discount houses

• Bonds, equity shares, trade bills and promissory notes

• Channelising savings, price determination, liquidity and low transaction cost

• Personal finance, corporate finance and public finance

Answer 1

The main functions are channelising savings, price determination, liquidity and low transaction cost. Together, they concern investment, pricing, conversion into cash and efficient trading.