alleryA financial market links savers and investors, performing what is known as its:
AAllocative function
BExecutive function
CLegislative function
DProtective function
Answer & Solution
Correct answer: A. Allocative function
1. Funds move to their most productive use.
2. Households save and firms invest.
3. That is the allocative function.
_Source: syllabus Business Studies Part II, Chapter 10, Financial Markets._
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