State any one consequence of a well performed allocative function of t

1.	State any one consequence of a well performed allocative function of the financial market.
Answer» (a) The rate of return offered to the investors would be higher. (b) Scarce resources will be allocated to those firms who have highest productivity for the economy.

State any one consequence of a well performed allocative function of the financial market.

Answer»

(a) The rate of return offered to the investors would be higher.

(b) Scarce resources will be allocated to those firms who have highest productivity for the economy.