The Principle Function of Financial Markets Is To

question 49

Multiple Choice

The principle function of financial markets is to:

• A)maximize profits earned by financial institutions.
• B)allocate factors of production.
• C)redistribute resources from poor households to wealthy households.
• D)funds from savers to investors.

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Definitions:

Foreign Aid

Financial or other forms of help given from one country to another for humanitarian or development purposes.

Free Trade

An economic policy that allows imports and exports between countries with minimal governmental restrictions or tariffs.

Foreign Competition

The presence of competing products or services from other countries in a domestic market.

Domestic Producers

Individuals or entities within a country that produce goods or services.