In financial markets, what would be the following best answer?
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a. Households sell liabilities b. Wealth is transformed into savings c. Households purchase financial assets d. Physical assets exchange hands
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Answer:
D. would seem to me to be the best answer. Financial markets can cover anything that has to do with the use of finances. It takes certain finances to obtain goods, and so what often happens in markets of any product, a physical asset that belongs to one merchant or merchant will be transferred to someone else after they receive their financial compensation.
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