The better the information provided to financial markets the:

Question

Quizplus · Accepted Answer

When financial markets receive better information, it leads to increased confidence among investors and a greater flow of funds, as investors are more willing to lend their money to borrowers. This increased flow of funds can help to drive economic growth, and ultimately benefit both savers and borrowers. A and C are incorrect because better information does not necessarily lead to less fund transfers or higher return requirements for lenders. B is incorrect because while there may be a greater amount of funds transferred, it also implies a higher level of risk.

The Better the Information Provided to Financial Markets The