Which of these displays the function of the financial market?(1 point)

Responses

Saved funds are transferred to borrowers via the sale of newly-issued securities. Companies receive money from selling stocks to investors.
Saved funds are transferred to borrowers via the sale of newly-issued securities. Companies receive money from selling stocks to investors.

Providing bank loans
Providing bank loans

interest paid on a saving account
interest paid on a saving account

Receiving bank loans

1 answer

The option that best displays the function of the financial market is:

Saved funds are transferred to borrowers via the sale of newly-issued securities. Companies receive money from selling stocks to investors.

This option effectively illustrates how financial markets facilitate the flow of funds from savers (investors) to borrowers (companies or governments) through mechanisms like the issuance of stocks and securities.