The primary economic role of financial markets is to

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Quizplus · Accepted Answer

The primary economic role of financial markets is to allocate resources to profitable businesses and away from businesses with losses. Financial markets allow for the efficient allocation of capital by providing a mechanism for investors to allocate their savings to the most productive investments. This allocation of resources leads to economic growth and increased prosperity. While investors may gain profits and earn dividends as a result of financial market activity, these are secondary outcomes of the market's primary role in allocating resources. Providing loanable funds to the government is not the primary role of financial markets.

The Primary Economic Role of Financial Markets Is to