Question

Financial markets A. channel funds indirectly between borrowers and lenders. B. channel funds directly from lenders to borrowers. C. act as go-betweens by holding a portfolio of assets and issuing claims based on that portfolio to savers. D. generally provide lenders with lower returns than do financial intermediaries.

Answer 1

B) channel funds directly from lenders to borrowers.

Step-by-step explanation:

The complete financial system is a means by which money is transferred from savers to borrowers. The financial system is made up of banks, insurance companies, financial markets, and other financial institutions that allow the exchange of money.

Financial markets are the only type of institution that allows the exchange of money from lenders to borrowers without third parties being involved.