Home
Class 12
BUSINESS STUDIES
What is meant by Allocative Function' of...

What is meant by Allocative Function' of financial markets?

Text Solution

Verified by Experts

Financial market helps in allocation of funds or savings from savers to investors. Thus, it helps in channelising surplus funds into most productive uses. This is the allocative function of financial market.
Doubtnut Promotions Banner Mobile Dark
|

Topper's Solved these Questions

  • PROJECT WORK

    ARIHANT PUBLICATION|Exercise CBSE(Examination Paper-2019) Set -1 (Section-B)|8 Videos

  • PROJECT WORK

    ARIHANT PUBLICATION|Exercise CBSE(Examination Paper-2019) Set -1 (Section-C)|9 Videos

  • PROJECT WORK

    ARIHANT PUBLICATION|Exercise CBSE(Examination Paper-2019) Set -3 (Section E)|2 Videos

  • PRINCIPLES OF MANAGEMENT

    ARIHANT PUBLICATION|Exercise CBSE EXAMINATIONS ARCHIVE ( LONG ANSWER)|11 Videos

  • STAFFING

    ARIHANT PUBLICATION|Exercise CBSE Examinations Archive (Long Answer Type Questions)|11 Videos

Similar Questions

Explore conceptually related problems

State any one consequence of a well performed 'allocative function' of financial market.

What function does financial market perform?

Knowledge Check

  • Which of the following is the function of financial market?

    A
    Mobilization of savings
    B
    Price fixation
    C
    Provide liquidity to financial assets
    D
    All of the above

  • Basic function of financial accounting is to

    A
    record all business transactions.
    B
    interpret financial data.
    C
    assist the management.
    D
    None of these.

    • Similar Questions

    Explore conceptually related problems

    What function does financial market perform?

    Types Of Financial Market

    What are the functions of a financial market? or 'Financial market plays an important role in the allocation of scarce resources in an economy by performing various functions'. Explain any three functions of financial market.

    What is meant by market period ?

    What is meant by capital market?

    What do you mean by financial markets?

    Home
    Profile