Financial capital consists of the funds that firms use to buy and operate capital. A financial market is where businesses get the funds that they use to buy capital. In a financial market, while firms are the demanders of the funds, people are the savers and ready to lend their sacrificed consumption, in other words, their savings. Financial markets are the channels through which firms borrow financial resources to buy capital. The interest rate is determined by the forces of demand and supply in a market called the loanable funds market in which borrowers (demanders of funds) and lenders (suppliers of funds) encounter. The correct answer is A.