Some economists believe that the financial sector does not channel all saving back into the spending stream. Which of the following financial assets, when held by individuals, does not reenter the spending stream?

Question

Quizplus · Accepted Answer

Money held by individuals does not reenter the spending stream directly as it represents savings that are not being used for investment or consumption, unlike bonds, stocks, or loans, which are financial instruments that facilitate investment and spending.

Some Economists Believe That the Financial Sector Does Not Channel