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SCORPION-xisa [38]
3 years ago
12

In financial markets, firms and governments in search of funds to pay for their daily operations would be the:___________.

Business
1 answer:
bija089 [108]3 years ago
4 0

Answer:

Borrowers

Explanation:

Financial markets provide the platform for trading of financial assets (instruments) . In the financial markets, through the activities of a combination of participants , funds from the <em>surplus secto</em>r <em>(investors)</em> are channeled to the <em>deficit sector (borrowers).</em>

<em>The surplus sector</em><em> c</em>omprises of persons, government, firms e.t.c<em> who have</em> <em>more funds than they need to spend right away</em>. Conversely, the deficit sector represents parties (firms, individuals, government) <em>who are have shortage of funds for whatever purpose</em>-e.g consumption, business expansion, funding of daily operations  e.t.c . <em>In short, they are in search of funds for different purposes.</em>

<em>Financial instruments</em> : These are contracts that confer rights on their holders (investors/lenders) to claim the income generate by the assets owned by the borrowers.

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