Asked by Shannon Gibbons on May 25, 2024
Verified
Financial markets provide a "conduit" for money, and act as intermediaries between the consumption and production sectors.
Conduit
An entity that acts as an intermediary by channeling funds from lenders to borrowers or investors.
Financial Markets
Platforms or environments where buyers and sellers trade financial securities, commodities, and other fungible assets.
Intermediaries
Entities or people who act as a middleman or agent between two parties in a financial transaction or negotiation.
- Acknowledge the contribution of financial markets and intermediaries to the economy.
Verified Answer
AS
Amirul ShahiranMay 27, 2024
Final Answer :
True
Explanation :
Financial markets facilitate the movement of money from savers to borrowers, thereby bridging the gap between those who have excess funds and those who need them for investment or consumption purposes. This makes them an important conduit for money and an intermediary between different segments of the economy.
Learning Objectives
- Acknowledge the contribution of financial markets and intermediaries to the economy.