QuestionJuly 19, 2025

Financial markets are a key institution for growth because: A. without them people could not save. B. without them there would be no investment. C. they promote saving and investment. D. they reduce economic inequality.

Financial markets are a key institution for growth because: A. without them people could not save. B. without them there would be no investment. C. they promote saving and investment. D. they reduce economic inequality.
Financial markets are a key institution for growth because:
A. without them people could not save.
B. without them there would be no investment.
C. they promote saving and investment.
D. they reduce economic inequality.

Solution
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Answer

C. they promote saving and investment. Explanation 1. Analyze Options Evaluate each option to determine its validity in the context of financial markets promoting growth. 2. Identify Correct Option Financial markets facilitate the allocation of resources, enabling savings to be channeled into investments. This promotes economic growth by efficiently distributing capital where it is most productive.

Explanation

1. Analyze Options<br /> Evaluate each option to determine its validity in the context of financial markets promoting growth.<br /><br />2. Identify Correct Option<br /> Financial markets facilitate the allocation of resources, enabling savings to be channeled into investments. This promotes economic growth by efficiently distributing capital where it is most productive.
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