The type of structured market through which the funds flow with the help of financial instruments such as bonds and stocks is classified as ____________?
Correct answer: A. financial markets
- A. financial markets
- B. non-financial markets
- C. funds market
- D. flow market
Explanation
Financial markets are organized mechanisms through which funds move between savers and users through instruments such as shares and bonds. Non-financial markets do not perform this securities-based funding function.
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About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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