The Role of the Financial Market in Economics ?

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Answer :

The financial market is an environment where people can buy andsell stocks, bonds, commodities, or other fungible items. Theseitems can be sold at low transaction costs also. There are generalmarkets and specialized markets. In a specialized market, there isonly one commodity that exist.The general idea of a market is placing buyers and sellers inone place. This arrangement allows these people to find each othermore easily; thus, the Financial market is a sort of marketplacefor these individuals. A market economy is when the economy isdependent upon the interactions between the buyers and sellers.These individuals have to allocate resources within the financialmarket. In contrast, a gift economy works totally different. Thefinancial market serves many purposes within the economy. First,the

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