Single choice7)Financial markets can facilitate:Price discoveryEfficient resource allocationPrice discovery and efficient resource allocation

The correct answer is: Price discovery and efficient resource allocation.

Financial markets play a crucial role in the overall economy of a nation. They serve two primary functions:

1. Price Discovery: It involves buyers and sellers negotiating prices of securities. The interaction between buyers and sellers helps to determine the price of a security. This process is called price discovery.

2. Efficient Resource Allocation: Financial markets play a crucial role in arranging adequate resources for the ones who are running industries in a country. The interaction between the buyers and sellers helps in deciding the price of a security. The price level, thus determined, helps to allocate resources in a most efficient manner.