The bond markets are important because.

A. they are easily the most widely followed financial markets in the United States

B. they are the markets where foreign exchange rates are determined

C. they are the markets where interest rates are determined

D. they are the markets without risk

Answer: Option C

Solution(By Examveda Team)

The bond markets are important because they are the markets where interest rates are determined. The bond market broadly describes a marketplace where investors buy debt securities that are brought to the market by either governmental entities or publicly-traded corporations. National governments generally use the proceeds from bonds to finance infrastructural improvements and pay down debts.