Businesses need capital to grow and to expand their respective business thus, where the financial market plays a critical role in the buildup of capital and the production of goods and services providing access to capital. In a well$-$developed and efficient market, the transaction costs are always lower with efficient transfer of funds; it can be mean also a lower cost of financing and a safe return on

Risk sharing

A$.$ increases borrowers' ability to raise funds in the financial system.

B$.$ comes at the cost of lower liquidity.

C$.$ is sometimes offset by the effects of diversification

D$.$ generally reduces the tax liability of savers