Financial institutions and markets ________.

Question

Quizplus · Accepted Answer

Financial institutions are the organized intermediaries that facilitate the flow of funds between savers and borrowers. Financial markets, on the other hand, are forums where buyers and sellers of financial assets come together to trade these instruments. Therefore, option A correctly reflects both financial institutions and markets. Option B is too narrow in scope, as financial activities can extend beyond those that support business operations. Option C is partially correct as financial markets do involve the purchase and sale of financial assets, but it does not capture the role of financial institutions. Option D is incorrect as it does not accurately describe the nature of financial institutions and markets.

Financial Institutions and Markets ________