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

Responses

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

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

Providing 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 statement describes the primary function of financial markets, which is to facilitate the transfer of funds from savers (investors) to borrowers (companies or governments) through various financial instruments, including stocks and bonds.