Functions Of Financial Market | Financial Markets | Notes | Summary - Zigya

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Financial Markets

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Functions Of Financial Market

Financial markets play an important role in the allocation of scarce resources in an economy by performing the following four important functions.

  1. Mobilisation of Savings and Channeling them into the most Productive Uses.
  2. Facilitate Price Discovery.
  3. Provide Liquidity to Financial Assets.
  4. Reduce the Cost of Transactions.

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