Which of the following statements is false regarding financial market?
A. Financial markets complicate the purchase and sale of financial assets.
B. Financial markets provide valuable information about securities being traded in the market.
C. They provide liquidity to financial assets.
D. None of the above.
Answer:A
Which of the following statements is false regarding financial market?
A. Financial markets complicate the purchase and sale of financial assets. B. Financial markets provide valuable information about securities being traded in the market. C. They provide liquidity to financial assets. D. None of the above.
Explanation: Financial markets facilitate easy purchase and sale of financial assets. In doing so they provide liquidity to financial assets, so that they can be easily converted into cash whenever required. Folders of assets can readily sell their financial assets through the mechanism of the financial market.