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

Responses

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.
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.

1 answer

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 highlights how financial markets enable the transfer of funds from those who have savings (investors) to those who need funds (borrowers) through the issuance of securities.