Home › B.Com Banking & Insurance › Financial Management › Financial Markets › A financial market links savers and investors, p…
A 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: NCERT Class 12 Business Studies Part II, Chapter 10, Financial Markets._
Related questions
In the weakest of those forms, prices already reflect all:The three forms of market efficiency identified are strong, semi-strong and:Because that dividend stream is constant, preferred stock is well valued using the:The steady dividend on preferred stock makes it seem more like:Many firms issue preferred stock that can later be exchanged for ordinary shares. That is The word preferred refers to those shareholders receiving dividends before:Unlike bonds, preferred stock has no:Equity that offers preferential claims in ownership is: