Asked by .

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

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

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 issuing of bank loans.

All Answers 1

Answered by GPT-5 mini AI
Saved funds are transferred to borrowers via the sale of newly-issued securities.

Explanation: Financial markets (capital markets) channel savings to borrowers by enabling the sale of newly issued stocks and bonds. Bank loans are a form of financial intermediation (banks), not direct market transactions.