Which of the following is NOT a function of the stock exchange? MCQ with Answer and Explanation

Question

Share Report Error

Which of the following is NOT a function of the stock exchange?

A. Issuing new currency notes

B. Providing liquidity to securities

C. Mobilising savings for investment

D. Price discovery of securities

Answer: Option A

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.

This question belongs to: Economy GK Economy Set 1

Request complete Subject PDF

Discuss this Question (0)

No comments yet. Be the first to start the discussion!

Practice More Economy Set 1 Questions

Question #1

Share Report

In the context of monetary economics, the 'Liquidity Effect' of an increase in the money supply refers to:

A. Only the rise in output

B. Only the rise in prices

C. The short-run decline in nominal interest rates caused by an increase in liquidity

D. The long-run rise in interest rates

View Answer & Solution Discuss

Get Complete Subject PDF for Economy GK

Correct Answer: Option C

Explanation:
The liquidity effect is the tendency for an exogenous increase in the money supply to lower nominal interest rates in the short run as the supply of loanable funds increases.

This question belongs to: Economy GK Economy Set 1