Question

In a free enterprise economy, financial markets

a. provide alternative places for savers to put their money
b. direct savings into new business investments
c. help build our economy’s wealth
d. all of the above

Answer 1

d. all of the above

Step-by-step explanation:

The financial market manages risk between parties with intermediate agents. They receive from the savers which want no risk and lender to investment which has exposure to risk. This helps to increase the economy's wealth and direct savings into new business investment.

Last, these financial markets will compete with each other and offer different services to the savers.