What Is the Most Fundamental Purpose of the "Capital Market

Multiple Choice

What is the most fundamental purpose of the "capital market"?

A) To connect the savings decisions of households with the borrowing decisions of firms.
B) To provide the means by which firms can acquire physical capital.
C) To provide the means by which households and firms can invest financial capital.
D) To connect firms and households who wish to borrow with financial institutions.
E) To connect households who wish to borrow with banks who wish to lend.