Question

Statement I: A financial market facilitates the transfer of savings from savers to investors. Statement II: It gives savers the choice of different investments and helps to channelize surplus funds into the most productive use. Choose the correct option from the following:

• A. Statement I is true and Statement II is false.
• B. Statement II is true and Statement I is false.
• C. Both the Statements are true.
• D. Both the Statements are false.

Answer 1

The Correct Option is C

Step 1: Financial markets play a crucial role in mobilizing savings and channeling them to productive investments. Step 2: They offer various investment choices and enable investors to allocate resources efficiently. Thus, both statements are true, and the correct answer is option C.