Question

Which of the following statements is true with regard to financial markets?

• A. They work as an intermediary between the savers and the investors by mobilising funds between them.
• B. They allocate funds available for investment into their most productive investment opportunity.
• C. They link the households which save funds and business firms which invest these funds.
• D. All of the above.

Answer 1

The correct option is D

All of the above.

Answer (d) All of the above

Explanation: A financial market is a market wherein individuals exchange financial derivatives and securities at low exchange costs. A few of the securities incorporate bonds and stocks, precious metals, and raw materials, which are referred to as commodities in financial markets.