Financial markets increase the volume of saving and investment by

Question

Quizplus · Accepted Answer

Financial markets provide savers with various investment options and enable borrowers to obtain funds from a wide range of sources. This increases the volume of saving and investment as it facilitates the transfer of funds from those who have a surplus to those who have a deficit of funds. Storing cash (A) does not necessarily increase savings or investment, reducing the velocity of money (B) may actually decrease it, and low interest rates (D) might discourage saving and increase borrowing, but it does not necessarily increase the overall volume of saving and investment.

Financial Markets Increase the Volume of Saving and Investment by