Financial markets:
A) act as intermediaries between borrowers and savers.
B) directly issue claims on savers to borrowers.
C) involve the buying and selling of existing financial securities only.
D) involve both primary and secondary transactions.

Question

Quizplus · Accepted Answer

Financial markets involve both primary (where securities are issued for the first time) and secondary (where existing securities are bought and sold) transactions. They allow borrowers to access funds from savers by issuing financial securities, and enable savers to invest their savings in return for potential returns.

Financial Markets