Economics · Financial Markets
Which of the following statements correctly describes a primary function of financial markets?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Commercial papers are long-term equity instruments traded exclusively on capital markets.
- 2The primary market facilitates the resale and trading of existing, already-issued securities.
- 3The money market provides short-term liquidity to companies and financial institutions.✓
- 4The capital market is primarily a market for short-term debt securities.
Correct answer
The money market provides short-term liquidity to companies and financial institutions.
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