A financial market is a(n):
A) framework or organization in which investors can buy and sell securities.
B) agency setup to certify creditworthiness of companies.
C) market place that requires physical presence for participation.
D) market in which both financial and real assets can be sold.

Question

Quizplus · Accepted Answer

A financial market is a framework or organization in which investors can buy and sell securities (such as stocks, bonds, and derivatives) and other financial instruments. It can be physical or virtual and provides a platform for buyers and sellers to interact and execute transactions.

Option B is incorrect because certification of creditworthiness is done by credit rating agencies, not financial markets. Option C is incorrect because a physical presence is not always necessary to participate in financial markets. Option D is partially correct as financial assets are traded in financial markets, but real assets like property and commodities have their own distinct markets.

A Financial Market Is A(n)