Question

“Financial markets reduce the cost of transactions.” Comment.

Solution

Financial markets provide valuable information about securities being traded in the market, which saves time, efforts and money of both buyers and sellers of financial assets in finding each other.

Some More Questions From Financial Markets Chapter

‘‘Money Market is essential market for short term funds.’’ Discuss.

What is meant by ‘Treasury Bill’ and ‘Trade Bill’?

What is meant by ‘Commercial Paper’ and ‘Certificate of Deposit’?

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Financial Markets

“Financial markets reduce the cost of transactions.” Comment.

Some More Questions From Financial Markets Chapter

‘‘Money Market is essential market for short term funds.’’ Discuss.

What is meant by ‘Treasury Bill’ and ‘Trade Bill’?

What is meant by ‘Commercial Paper’ and ‘Certificate of Deposit’?

What is Money Market?

Give two examples of Floatation Costs.

Name any two buyers of Commercial Papers.

What is meant by ‘Near Money’?

Name the one sub-market of money market.

What type of trade-off function is performed by the money market?

What is ‘Zero Coupon Bond’?

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