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Questions and Answers
What is a key function of financial markets?
What is a key function of financial markets?
- Allocation of physical goods
- Allocation of capital (correct)
- Allocation of natural resources
- Allocation of labor
What do financial markets facilitate?
What do financial markets facilitate?
- Transportation of goods
- Buying and selling of physical goods
- Buying and selling of financial assets (correct)
- Government policymaking
What is a characteristic of a primary financial market?
What is a characteristic of a primary financial market?
- Previously issued securities are traded among investors
- No direct interaction between buyers and sellers
- No issuance of new securities
- Newly issued securities are sold to investors (correct)
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