MyLab Economics with Pearson eText -- Access Card -- for The Economics of Money, Banking and Financial Markets (My Econ Lab)
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Chapter 1, Problem 4Q
To determine

The importance of financial markets to the health of an economy.

Context Introduction:

Financial markets refer to a marketplace in which trade of various securities take place. It includes trade of securities such as bonds, shares, currency and also derivatives. These securities are traded at a very low transaction cost.

Unproductive funds refer to the set of funds which has least value or production to it. They do not have anyproductive use and thus the funds remain unproductive.

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