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CBSE Class 12-commerce Business Studies Part II Concept of Financial Markets and Money Market

Understand the concept of Financial Market and its Classifications from CBSE Class 12 Commerce Business Studies chapter Financial Markets by referring to the revision notes, sample papers, past years’ papers etc. at TopperLearning.

A financial market helps to link the savers and the investors by mobilising funds between them. In doing so, it performs what is known as an allocative function. It allocates or directs funds available for investment into their most productive investment opportunity. When the allocative function is performed well, two consequences follow:

The rate of return offered to households will be higher.

Scarce resources are allocated to firms which have the highest productivity for the economy.

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