The current structure of financial markets can be best understood as the result of attempts by financial market participants to
A)adapt to continually changing government regulations.
B)deal with the great number of small firms in the United States.
C)reduce transaction costs.
D)cartelize the provision of financial services.

Question

Quizplus · Accepted Answer

The structure of financial markets has evolved over time in response to efforts by market participants to reduce transaction costs. This includes the development of electronic trading platforms, the establishment of centralized exchanges, and the use of standardized contracts and derivatives to facilitate trading. It is not primarily driven by government regulation, the number of small firms, or efforts to cartel the provision of financial services.

The Current Structure of Financial Markets Can Be Best Understood