The basic purpose of financial markets is:
A)to match people who want money to spend now with people who want to save their money for later.
B)to buy and sell different currencies in order to make a profit.
C)to sell commodities to firms as inputs.
D)to buy commodities from firms and the government to sell to the public.

Question

Quizplus · Accepted Answer

Financial markets exist to facilitate the transfer of funds from savers to those who want to spend money now. This includes stock markets, bond markets, and other investment platforms where individuals and institutions can invest in various assets such as stocks, bonds, and securities. Through these markets, people who have saved money can earn a return on their investment while simultaneously providing funds to businesses and individuals who need capital to finance projects or purchases.

The Basic Purpose of Financial Markets Is