Question


Financial Markets Channeling Funds Quick Check
4 of 64 of 6 Items
Question
Which of the following illustrates the function of the financial market?(1 point)
Responses

Saved funds are transferred to borrowers via the issuing of bank loans.
Saved funds are transferred to borrowers via the issuing of bank loans.

Saved funds are transferred to lenders via the issuing of bank loans.
Saved funds are transferred to lenders via the issuing of bank loans.

Saved funds are transferred to lenders through the sale of newly-issued securities.
Saved funds are transferred to lenders through the sale of newly-issued securities.

Saved funds are transferred to borrowers via the sale of newly-issued securities.
GPT-4o mini
The correct response that illustrates the function of the financial market is:

**Saved funds are transferred to borrowers via the sale of newly-issued securities.**

This option captures the essence of how financial markets facilitate the flow of funds from savers (lenders) to borrowers through mechanisms like issuing securities (stocks and bonds).

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