________ increase the liquidity of markets and the availability of funds by attracting new investors and offering new opportunities for borrowers.

Question

Quizplus · Accepted Answer

Market-broadening instruments such as new financial products or instruments can attract new investors and create new opportunities for borrowers. These instruments can increase the liquidity of markets by providing more options for market participants to invest or raise funds. Market-management instruments such as regulations or policies may help manage risks but may not necessarily increase liquidity or availability of funds. Risk-management instruments such as derivatives help manage risk but do not directly contribute to market liquidity or availability of funds. Arbitraging-broadening instruments is not a commonly used term and does not accurately describe any financial instrument or concept.

________ Increase the Liquidity of Markets and the Availability of Funds