Which of the following BEST describes the primary function of financial markets in an economy?

Question

Accepted Answer

To facilitate the transfer of funds from surplus economic units to deficit economic units efficiently. Financial markets primarily serve as a mechanism for channelling funds from savers (surplus units) to borrowers and investors (deficit units), thereby promoting efficient allocation of capital resources in the economy. Options A, C, and D describe specific, narrower functions that do not capture the

Answer

A) To regulate the activities of commercial banks and ensure compliance with CBN guidelines

Answer

B) To facilitate the transfer of funds from surplus economic units to deficit economic units efficiently

Answer

C) To provide a platform exclusively for the Federal Government of Nigeria to raise long-term debt

Answer

D) To determine the official exchange rate between the Naira and foreign currencies

Which of the following BEST describes the primary function of financial markets in an economy?

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