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 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 borrowers via the issuing of bank loans.
Saved funds are transferred to borrowers via the issuing of bank loans.

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

1 answer

The option 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 highlights how savings can be allocated to those who need funds, typically through investments in securities, which is a core function of the financial market.