Financial markets provide a "conduit" for money, and act as intermediaries between the consumption and production sectors.

Question

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Financial markets facilitate the movement of money from savers to borrowers, thereby bridging the gap between those who have excess funds and those who need them for investment or consumption purposes. This makes them an important conduit for money and an intermediary between different segments of the economy.

Financial Markets Provide a "Conduit" for Money, and Act as Intermediaries