Asked by maddie arveseth on Jun 14, 2024
Verified
Which of the following are examples of institutions that economists would classify as belonging to the financial capital market?
A) the stock market
B) banks
C) savings and loans
D) all of the above
Financial Capital Market
The complex set of institutions in which suppliers of capital (households that save) and the demand for capital (firms wanting to invest) interact.
Institutions
Structures and mechanisms of social order governing the behavior of a set of individuals within a given community, such as legal codes, money, and schools.
Economists
Professionals who study, develop, and apply theories and concepts from economics to analyze how societies utilize scarce resources to produce valuable commodities and distribute them among different people.
- Identify and describe various components of the financial capital market.
Verified Answer
AB
Aashna BafnaJun 17, 2024
Final Answer :
D
Explanation :
All of the options listed (the stock market, banks, savings and loans) are considered part of the financial capital market because they are all institutions through which suppliers of funds (savers, investors) can provide funds to users of funds (borrowers, firms).
Learning Objectives
- Identify and describe various components of the financial capital market.