The passage discusses the role and functions of the

financial market in facilitating the interaction between

investors/lenders and borrowers/users of money. Here
are the key points highlighted:

1. **Money Flow and Financial Market:**

- Money flows from surplus sectors to deficit sectors,
where surplus individuals or entities lend to those in
need. In the business sector, investors/lenders provide
funds to businessmen for production or sale of goods
and services.
- The financial market acts as a link between these
two groups, facilitating the transfer of funds from
investors/lenders to borrowers/users.

2. **Definition of Financial Market:**

- The financial market serves as a transmission
mechanism between investors/lenders and
borrowers/users, enabling the transfer of funds. It
consists of individual investors, financial institutions, and
intermediaries connected by formal trading rules and
communication networks.

3. **Credit Instruments:**
- Credit instruments such as bills of exchange and
promissory notes facilitate lending and borrowing
transactions. These instruments provide written
agreements for the repayment of borrowed funds.
4. **Functions of Financial Market:**
- (a) Facilitating interaction between investors/lenders
and borrowers/users.
- (b) Providing pricing information through the trading
of financial assets.
- (c) Ensuring security in dealings with financial assets.
- (d) Ensuring liquidity by providing mechanisms for
investors to sell financial assets.
- (e) Ensuring low transaction costs and access to
information.

Overall, the financial market plays a crucial role in

efficiently channeling funds between surplus and deficit
sectors, providing necessary infrastructure and
mechanisms for financial transactions, pricing
information, security, liquidity, and cost-effective
transactions.