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Answer (C) is correct . Financial markets bring entities that have funds to invest together with entities that have financing needs. They facilitate the transfer of assets and obligations. Due to this activity, financial markets cause people to adjust their consumption patterns. Financial intermediaries increase the efficiency of financial markets through better allocation of financial resources, not by clearing the market.

Answer (A) is incorrect because It is a true statement about financial markets.
Answer (B) is incorrect because It is a true statement about financial markets.
Answer (D) is incorrect because It is a true statement about financial markets.