Question

The Influence of Financial Markets on the US and Global Economies

Answer 1

Explanation:

There is a strong positive relationship between financial market development and economic growth. ... Large financial markets with lots of trading activity provide more liquidity for market participants than thinner markets with few available securities and participants and thus limited trading opportunities.

Answer 2

Financial markets play a critical role in the accumulation of capital and the production of goods and services. ... In addition, efficient financial markets and institutions tend to lower search and transactions costs in the economy.