Final answer:
Financial transactions involve the movement of funds between entities and are analyzed using the tools of demand and supply. These transactions can include investing, borrowing, or exchanging currencies.
Step-by-step explanation:
In a modern, developed economy, financial capital often moves invisibly through electronic transfers between bank accounts. This can be analyzed using the tools of demand and supply, similar to markets for goods or labor. Financial transactions involve the movement of funds between entities, such as individuals, businesses, or governments, and are typically carried out for the purpose of investing, borrowing, or exchanging currencies.