Every financial market performs the following function:
A) It determines the level of interest rates.
B) It allows common stock to be traded.
C) It allows loans to be made.
D) It channels funds from lenders-savers to borrowers-spenders.

Question

Quizplus · Accepted Answer

The financial market channels funds from lenders-savers to borrowers-spenders by facilitating the buying and selling of various financial instruments such as stocks, bonds, and currencies. This enables borrowers to access funding and lenders to earn a return on their investments. While interest rates and stock trading are also important functions of financial markets, they are not the primary function. Loans can be made outside of financial markets, and are not necessarily linked to the buying and selling of financial instruments.

Every Financial Market Performs the Following Function