contestada

Which of the following functions does not require financial markets?
a. Retention of cash by corporations
b. Provision of liquidity
c. Risk reduction by investment in diversified portfolios
d. Provision of pricing information

Respuesta :

tutordamola

Answer:

The answer is A.

Explanation:

Financial markets do all of the options except retention of cash by corporations. Financial market does not have thr ability to determine the amount of cash that corporation keeps.

Financial markets provides liquidity by making sure corporations are able to access loans/bonds at every time .

It reduces risk by engaging in diversified portfolio.

Tundexi

Answer:

A. Retention of cash by Corporations.

Explanation:

The financial market, as the name depicts, is a marketplace that gives a platform for the sale and purchase of financial assets and commodities, such as stocks, bonds, derivatives, and foreign exchange. Liquidity, risk reduction, and pricing information are all functions of financial markets. But the option  Retention of cash by corporation does not require the financial markets.

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