Which one of the following is a consequence of a well-functioning financial market?

Question

Quizplus · Accepted Answer

A well-functioning financial market leads to greater capital accumulation as individuals and firms have access to funds needed for investment. It also results in better projects getting financed as investors are able to assess risk and allocate capital to the most promising opportunities. This ultimately leads to a lower cost of capital as competition in the market drives down borrowing costs.

Which One of the Following Is a Consequence of a Well-Functioning