The correct answer is: D. a-3, b-2, c-1, d-4
Financial instruments are a broad category of assets that include cash, stocks, bonds, and derivatives. They are used to facilitate the transfer of funds between parties. Financial markets are places where financial instruments are bought and sold. They can be organized or unorganised. Organized financial markets are regulated by governments and have rules and regulations that must be followed. Unorganised financial markets are not regulated and are often more informal. Financial institutions are businesses that provide financial services. They can be intermediaries or non-intermediaries. Intermediaries, such as banks, facilitate the transfer of funds between borrowers and lenders. Non-intermediaries, such as insurance companies, provide financial protection against risk. Indigenous bankers are people who provide financial services in traditional societies. They often operate outside of the formal financial system.
Here is a more detailed explanation of each option:
- Option A: a-4, b-1, c-2, d-3. This option is incorrect because it matches financial instruments with the unorganised financial system. Financial instruments are used to facilitate the transfer of funds, and the unorganised financial system is a system of informal financial markets.
- Option B: a-2, b-1, c-4, d-3. This option is incorrect because it matches financial institutions with the organised financial system. Financial institutions are businesses that provide financial services, and the organised financial system is a system of regulated financial markets.
- Option C: a-1, b-2, c-4, d-3. This option is incorrect because it matches financial markets with the unorganised financial system. Financial markets are places where financial instruments are bought and sold, and the unorganised financial system is a system of informal financial markets.
- Option D: a-3, b-2, c-1, d-4. This option is correct because it matches financial instruments with the organised financial system, financial markets with intermediaries and non-intermediaries, financial institutions with intermediaries, and indigenous bankers with the unorganised financial system.