Question

financial markets improve economic welfare because

Financial markets improve economic welfare because: O A. they channel funds from savers to investors O B. they allow consumers to time their purchases better O C. they eliminate the need for financial intermediaries D. both A and B are correct O E. all of the above are correct

Answer 1

Answer: Do both A and B are correct. Explanation's Financial markets allows funds to move from people who lack productive investment opportunities to people who have such opportunities. These markets are critical for Producing an efficient allocation of capital, which contributes to higher production and efficiency for the overall economy Well functioning financial markets also directly improve the well being of consumers by allowing them to time their purchases better. They Channel funds from savers to investors. They provide funds to young people to buy. what they need and can eventually afford with out Porcing them to wait until they have saved up the entire purchase price, Financial markets that are operating efficiently improve the economic welfare of everyone in the society.

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