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

Question

Quizplus · Accepted Answer

Financial markets exist to facilitate the flow of funds between individuals, businesses, and governments. The primary function of financial markets is to connect people who have money to save with those who have a need to borrow money. This helps to allocate capital to businesses, which can then use it to invest in new projects or expand their operations. This allocation of capital is critical to economic growth and development. Additionally, financial markets allow individuals to invest in a wide range of financial instruments, including stocks, bonds, and commodities, which can help them earn a return on their savings over time.

The Basic Purpose of Financial Markets Is