Financial markets have the basic function of
A) bringing together people with funds to lend and people who want to borrow funds.
B) assuring that the swings in the business cycle are less pronounced.
C) assuring that governments need never resort to printing money.
D) both A and B of the above.
E) both B and C of the above.

Question

Quizplus · Accepted Answer

Financial markets primarily serve the function of allowing lenders and borrowers to connect and transact. While stable financial markets can help stabilize economies, they do not eliminate the need for governments to print money at times.

Financial Markets Have the Basic Function of