The financial markets play an important role in channeling funds from savers to borrowers. Which of the following illustartes this function of financial market?  A) Investors purchase assets like real estate and gold from other investors B) Investors purchase securities that are issued by firms and government  C) Investors deposit funds into interest bearing accounts which are then loaned to borrowers  D) Investors purchase capital goods which are used in production by borrowers

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Public Saving

Public saving deals with the amount which has been in excess after meeting all the obligatory expenses and investment of the government. Taxes are collected by the government to meet its day-to-day expenditures. The obligatory expenses include all those expenses which are mandatory for the government. It cannot be avoided as it is inevitable.