CBSE Class 12 Business Studies 2019 Delhi set 1

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Question : 8
Total: 40
What is meant by 'Allocative Function' of Financial Markets?
Solution:  
Allocative function is an important function of the financial market. A financial market act as a link between the savers and investors. It provides a platform for mobilisation of saving from the household to the investors. Thus, it allocates funds from households to investors.
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