Responses
interest paid on a saving account
interest paid on a saving account
Providing bank loans
Providing 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.
Receiving bank loans
Receiving bank loans
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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 response highlights the role of financial markets in facilitating the transfer of funds from savers (investors) to borrowers (companies and other entities) through mechanisms like issuing securities and stocks.
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