Responses
Providing bank loans
Providing bank loans
Receiving bank loans
Receiving bank loans
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.
interest paid on a saving account
interest paid on a saving account
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9 answers
The response 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 statement captures the key function of financial markets, which is to facilitate the flow of funds from savers (investors) to borrowers (companies and other entities) through various financial instruments, including stocks and bonds.
The response that represents an example of capital loss is:
An investor sells a bond on the secondary market below the price she paid for it.
This indicates that the investor incurred a loss because they sold the bond for less than what they originally paid, leading to a capital loss.
The correct response is:
stock market.
Nasdaq, the American Stock Exchange, and the OTC (over-the-counter) market are all components of the stock market, where stocks are bought and sold.
The correct response that represents an example of direct finance is:
A company sells its stocks to investors.
In direct finance, borrowers (such as companies) obtain funds directly from savers (investors) without going through an intermediary like a bank. Selling stocks to investors fits this definition.
The response 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 accurately describes how financial markets facilitate the movement of funds from savers to borrowers by enabling the buying and selling of securities, allowing companies to raise capital through investments from the public.
