n NISM Certifications
VII NISM Series VII
Medium

The important functions of financial markets are _______ and _______.

Practice question from NISM Series VII Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Lending, Liquidity

  2. B

    Liquidity, Information

  3. C

    Borrowing, Information

  4. Liquidity, Exit Options

    Correct answer

Why this is the answer

Financial markets enable economic activity by providing liquidity and exit options, allowing investors to efficiently enter or exit positions based on new information.

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