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American_Bankers_Association

CTFA · Question #223

The purpose of financial markets is to:

The correct answer is C. Allocate savings efficiently. See the full explanation below for the reasoning.

Investment Management

Question

The purpose of financial markets is to:

Options

  • AIncrease the price of common stocks
  • BLower the yield on bonds
  • CAllocate savings efficiently
  • DControl inflation

How the community answered

(33 responses)
  • A
    6% (2)
  • B
    3% (1)
  • C
    79% (26)
  • D
    12% (4)

Topics

#financial markets purpose#capital allocation#savings efficiency#market function

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