Final answer:
Capital markets facilitate the flow of funds from those with surplus cash, such as large corporations, to individuals who seek to borrow money to fulfill various financial objectives. They offer a way for savings to generate returns through investments like stocks, bonds, and mutual funds. The answer is option D.
Step-by-step explanation:
Capital markets play a pivotal role in matching large corporations with excess cash to individuals who wish to borrow money. These financial markets, including stocks, bonds, bank loans, and other financial investments, allow households and financial capital suppliers to receive a return on their savings by channeling funds into the demands of financial capital seekers.
Whether it's through direct investment in company shares or through vehicles such as mutual funds which combine multiple securities, capital markets provide a platform for wealth generation and the financing of a wide range of economic activities.