Which of the following is NOT a function of the stock exchange?
A. Price discovery of securities
B. Mobilising savings for investment
C. Providing liquidity to securities
D. Issuing new currency notes
Answer: Option D
Solution (By JKSSB Mock Tests)
Issuing currency notes is the function of the central bank. Stock exchanges provide liquidity, facilitate price discovery and help mobilise savings for productive investment.
Explanation:
Automatic stabilisers are elements of the fiscal system—progressive taxes and unemployment benefits—that automatically reduce the amplitude of business-cycle fluctuations without the need for new legislation.
Explanation:
Perfect knowledge is a feature of perfect competition. Imperfect competition is characterised by product differentiation, selling costs and some degree of price control by sellers.
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