Question

Which of the following illustrates the function of the financial market?(1 point)
Responses

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

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 through the sale of newly-issued securities.

Answers

GPT-4o mini
The response that best illustrates the function of the financial market is:

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

This option reflects how financial markets facilitate the movement of funds from those who have excess capital (savers) to those who need capital (borrowers) through the issuance of securities, such as stocks and bonds.

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