The most important function of a financial market is:
A)to facilitate the flow of funds between lenders and borrowers
B)to provide a market for shares
C)to provide information about an issuing company's financial situation
D)to secure profits for brokers and agents
E)to provide information about shares

Question

Quizplus · Accepted Answer

The primary function of a financial market is to facilitate the flow of funds between lenders and borrowers. This allows for efficient allocation of resources and helps to promote economic growth. While providing a market for shares and information about companies are also important functions of financial markets, they are secondary to the facilitation of the flow of funds. Securing profits for brokers and agents is not a primary function of financial markets, but rather a byproduct of their activities.

The Most Important Function of a Financial Market Is