Financial markets improve economic welfare because
A) they allow funds to move from those without productive investment opportunities to those who have such opportunities.
B) they allow consumers to time their purchases better.
C) they weed out inefficient firms.
D) they do all of the above.
E) they do A and B of the above.

Question

Quizplus · Accepted Answer

Financial markets improve economic welfare by facilitating the transfer of funds to productive investment opportunities (A) and allowing consumers to better time their purchases (B).

Financial Markets Improve Economic Welfare Because