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 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 lenders through the sale of newly-issued securities.

1 answer

The statement that best illustrates the function of the financial market is:

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

This accurately reflects how financial markets facilitate the transfer of savings from individuals or institutions who have excess funds (lenders) to those who need funds (borrowers) through mechanisms like the sale of stocks and bonds.