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joja [24]
3 years ago
14

Financial markets :a. determine tax rates. b. increase transactions costs. c. reduce diversification. d. are the same as resourc

e markets. e. provide liquidity.
Business
1 answer:
r-ruslan [8.4K]3 years ago
7 0

Answer:

The correct answer is letter "E": provide liquidity.

Explanation:

Financial market describes any manner in which buyers and sellers meet for trading assets, usually financial securities such as stocks, bonds currencies, options, and derivatives. Financial markets are a cornerstone of the capitalist economy because they assist entrepreneurs and businesses in facilitating capital formation and liquidity.

<em>Financial markets create liquidity by making the trading of financial holdings easy for buyers and sellers without the need of a physical market.</em>

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