The bond market is important because
A)it is the major source of borrowed funds for U.S. business.
B)it provides a rate of return significantly greater than the stock market.
C)it provides foreign purchasers of U.S. products a means to exchange their currencies for U.S. dollars.
D)it provides a way for businesses and governments to borrow funds from savers and it is the market that determines interest rates.

Question

Quizplus · Accepted Answer

The bond market is important because it provides a way for businesses and governments to borrow funds from savers and it is the market that determines interest rates. This is critical for economic growth and development as it allows for investment in various projects and initiatives. Additionally, the bond market is closely watched by investors and analysts as changes in interest rates and bond prices can indicate shifts in the overall economy.

The Bond Market Is Important Because