Question

The market creates liquidity.

• A. Organised market
• B. Unorganised market
• C. Primary market
• D. Secondary market

Hint:

Organised markets are typically more liquid due to regulatory frameworks and a large number of buyers and sellers.

Answer 1

The Correct Option is A

Step 1: Understand the concept of liquidity.
Liquidity refers to how easily an asset can be bought or sold in a market without affecting its price. An organised market typically has higher liquidity due to its structured nature and better regulatory framework.
Step 2: Organised vs Unorganised market.
- Organised markets are regulated and have established rules, making them efficient in facilitating trade and increasing liquidity. - Unorganised markets lack regulation, and liquidity is often lower due to inefficiencies and informal trading.
Step 3: Apply to the options.
An organised market provides more liquidity due to its structure and regulation, unlike the other types of markets.
Final Answer: \[ \boxed{\text{Organised market}} \]