Known factors such as current taxes prevailing in the market and the government policies affects the prices in the financial market. Therefore, the options A and C hold true regarding the financial markets.
A financial market is referred to or considered as such a market, which deals exclusively in matters related to finance in any given economy, during a given period of time. It does not take into consideration the prevailing conditions, which are external to its scope in an economy.
A financial market may be impacted by a number of internal as well as external factors. These may include external factors such as change in trends as well as consumer preferences. Moreover, the known factors such as taxation rates and government fiscal policy also impact such markets.
Therefore, the options A and C hold true regarding the significance of financial markets.
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