Which of the following is an example of a financial market?

A. A local coffeehouse where people regularly buy and sell financial instruments.

B. A bank that only accepts deposits and issues loans.

C. An electronic network used for buying and selling textbooks.

D. A central bank used for raising taxes and borrowing on behalf of the government.

Question

Business

Alexis Hester

13 December, 07:51

Which of the following is an example of a financial market?

A. A local coffeehouse where people regularly buy and sell financial instruments.

B. A bank that only accepts deposits and issues loans.

C. An electronic network used for buying and selling textbooks.

D. A central bank used for raising taxes and borrowing on behalf of the government.

+2

Answers (1)

Know the Answer?

Katherine Estrada · Answer 1

A. A local coffeehouse where people regularly buy and sell financial instruments.

Explanation:

A local coffeehouse where people regularly buy and sell financial instruments is an example of a financial market because by definition a financial market is a place where people buy and sell financial securities and derivatives at minimal transaction costs.

Although in the scenario above it is strange that the location is a coffee shop, however, what is actually essential is the fact that the activities that defines a financial market is taking place therein.