Question

What is the basic reason for the emergence of a well-functioning derivative market in India?

a.

Strict regulations

b.

Lack of investor confidence

c.

Efforts to strengthen investor confidence and promote free flow of funds

d.

Economic downturn

Answer: (c).Efforts to strengthen investor confidence and promote free flow of funds Explanation:The emergence of a well-functioning derivative market in India is attributed to efforts to strengthen investor confidence and promote the free flow of funds in the context of liberalization, privatization, and globalization.

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Q. What is the basic reason for the emergence of a well-functioning derivative market in India?

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