The option that is right about the promotion of economic efficiency by financial markets is Channeling of funds from savers to investor.
- financial market can be regarded as a place which give room for buyers as well as sellers to come together so that buying as well as selling and trading of commodities and other financial securities can take place.
- Financial markets serve as intermediary that help in allocation of limited resources within an economy between individuals and government.
- They also play a role as a brokerage between the savers and investors.
- when the financial market channel this funds, the investor are usually the party that benefit most since the investor will have more funds to expand their business.
- In financial markets, the relationship that exist between the savers and the investors in the sense that the savers provide funds which goes to the investors directly through buying of stocks and bonds by the savers, hence, channeling of funds through banks
Therefore, Option C is right.
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