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What Is the Most Fundamental Purpose of the "Capital Market

Question 40

Multiple Choice

What is the most fundamental purpose of the "capital market"?


A) To connect the savings decisions of households with the borrowing decisions of firms.
B) To connect households who wish to borrow with banks who wish to lend.
C) To provide the means by which firms can acquire physical capital.
D) To connect firms and households who wish to borrow with financial institutions.
E) To provide the means by which households and firms can invest financial capital.

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