The financial markets play an important role in channeling funds from savers to borrowers. Which of the following illustrates this function of financial markets?(1 point)
Responses
a Investors deposit funds into interest-bearing accounts which are then loaned to borrowers.
b Investors purchase securities stocks that are issued by firms and governments.
c Investors purchase assets like real estate and gold from other investors.
d Investors purchase capital goods which are used in production by borrowers. Investors withdraw money from their savings accounts.
1 answer
b Investors purchase securities stocks that are issued by firms and governments.