What are the three main roles of financial markets?
A) Act as intermediaries between governments and firms, decrease liquidity, and diversify risk
B) Act as intermediaries between buyers and sellers, provide liquidity, and integrate risk
C) Act as intermediaries between governments and firms, provide liquidity, and integrate risk
D) Act as intermediaries between buyers and sellers, provide liquidity, and diversify risk

Question

Quizplus · Accepted Answer

Financial markets act as intermediaries between buyers and sellers by facilitating the transfer of financial assets, provide liquidity by allowing for easy buying and selling of assets, and diversify risk by allowing investors to spread their investments across different kinds of assets. These are the three main roles of financial markets.

What Are the Three Main Roles of Financial Markets