The financial markets play an important role in channeling funds from savers to borrowers. Which of the following illustrates this function of financial markets?(1 point)
Responses
Investors purchase capital goods which are used in production by borrowers. Investors withdraw money from their savings accounts.
Investors purchase capital goods which are used in production by borrowers. Investors withdraw money from their savings accounts.
Investors purchase securities stocks that are issued by firms and governments.
Investors purchase securities stocks that are issued by firms and governments.
Investors deposit funds into interest-bearing accounts which are then loaned to borrowers.
Investors deposit funds into interest-bearing accounts which are then loaned to borrowers.
Investors purchase assets like real estate and gold from other investors.
Investors purchase assets like real estate and gold from other investors.
The correct answer is: Investors deposit funds into interest-bearing accounts which are then loaned to borrowers.
The correct answer is:
Investors deposit funds into interest-bearing accounts which are then loaned to borrowers.
This option illustrates the function of financial markets where investors deposit funds into interest-bearing accounts, such as savings accounts, and these funds are then lent to borrowers. This helps channel funds from savers (investors) to borrowers, allowing the borrowers to use the funds for investments, projects, or other financial needs.