Financial markets enable the transfer of risk by:
A) requiring that risk-averse investors have access to U.S. Treasury bond markets.
B) allowing individuals and firms less willing to bear risk to transfer risk to other individuals and firms more willing to bear risk.
C) making sure that higher default risk is offset by greater liquidity.
D) enabling even unsophisticated investors to purchase highly complex financial instruments.
Correct Answer:
Verified
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