Financial markets :a. determine tax rates. b. increase transactions costs. c. reduce diversification. d. are the same as resource markets. e. provide liquidity.

The correct answer is letter "E": provide liquidity.

Explanation:

Financial market describes any manner in which buyers and sellers meet for trading assets, usually financial securities such as stocks, bonds currencies, options, and derivatives. Financial markets are a cornerstone of the capitalist economy because they assist entrepreneurs and businesses in facilitating capital formation and liquidity.

Financial markets create liquidity by making the trading of financial holdings easy for buyers and sellers without the need of a physical market.

the correct answer option is b. a single paragraph.

explanation:

when you are thinking about paragraph​ topics, you should always choose a subject that can be adequately addressed in a single paragraph.

a paragraph is a piece of writing consisting of a few sentences that deal with a single theme. it has only a single idea that the paragraph revolves around and talks about.

so a paragraph topic must be chosen wisely where a single idea can be communicated in a single paragraph.