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In: Finance

Financial markets match individual borrowers and savers and individuals with different tolerance for risk T/F

Financial markets match individual borrowers and savers and individuals with different tolerance for risk
T/F

Solutions

Expert Solution

True

Following are some function of Financial market :

  • Borrowing and Lending:

Individual(lender) with excess fund lend money to Individual(borrower) who require money.

  • Risk Sharing :

​​​​​​​Financial market allows to transfer of risk from individual who does not want to take risk to Individual who is ready to take risk.


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