The following are important functions of financial markets:
I. Source of financing; II) Provide liquidity;
III. Reduce risk;
IV. Source of information
A) I only
B) I and II only
C) I, II, III, and IV
D) IV only

Question

Quizplus · Accepted Answer

I. Financial markets provide a source of financing for individuals, businesses, and governments to fund their operations and investments.
II. Financial markets provide liquidity, allowing investors to easily buy and sell financial instruments.
III. Financial markets provide risk reduction through diversification, hedging, and insurance.
IV. Financial markets provide information about the value of assets, the performance of companies, and the overall health of the economy, which helps investors make informed decisions.

The Following Are Important Functions of Financial Markets