Which of the following best describe the flow of funds in a financial market? * a. suppliers of funds to demanders of funds b. Financial market to suppliers of funds to demanders of funds c. demanders of funds to suppliers of funds d. suppliers of funds to financial institutions to demanders of funds

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Functions of Financial Institutions

Financial institutions are businesses that are formed to deal with financial and monetary transactions. These organizations primarily accept deposits, advance loans, make investments, and provide foreign exchange services. Financial institutions include, but are not limited to, banks, insurance companies, trust companies, brokerage firms, and investment bankers. Because financial institutions play such an important role in the economy in terms of monetary transactions, regulating their activities has become a requirement for governmental authorities. As a result, the government creates a multitude of laws and regulations to oversee the activities of financial institutions.