Financial markets:
A) act as intermediaries by holding a collection of assets and issuing claims based on them to savers.
B) issue claims on future cash flows of individual borrowers directly to lenders.
C) transmit funds indirectly between lenders and borrowers.
D) usually provide lenders with lower returns than other financial intermediaries.

Question

Quizplus · Accepted Answer

Financial markets directly connect lenders and borrowers by issuing claims on future cash flows, such as stocks and bonds, without intermediaries.

Financial Markets