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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
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 welldeveloped 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
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