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 (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.

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