Discuss the Primary Purpose of Financial Markets in Respect to Financial Instruments and Institutions

The Primary Purpose Of Financial Markets.
Borrowers and lenders of funds use financial markets for buying necessary goods or for saving. Borrowers (or deficit units) require funds and this is provided by lenders (or surplus units).
Generally deficit units will require large amounts of funding for buying goods such as cars or houses, however most surplus units will not have enough money to lend out to them standalone. Because of this, a financial institution is used to facilitate the flow of funds from the lender to the borrower.
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