The money and capital markets make a vital contribution by directing the savings of older individuals into the:
A) Accumulation of financial assets which only they can access when needed for retirement
B) Safest stocks and bonds so they can be assured of a set income at retirement
C) Hands of younger individuals who desire to improve their current standard of living by borrowing
D) Pockets of other, older individuals who may have to borrow more than they save because of a threatened fall off in their personal incomes
E) None of the above

Question

Quizplus · Accepted Answer

The money and capital markets facilitate the transfer of savings from those who have excess funds (such as older individuals saving for retirement) to those who need funds for various purposes, including younger individuals who may borrow to improve their current standard of living. This process is essential for economic growth and development, as it ensures that savings are channeled into productive uses.

The Money and Capital Markets Make a Vital Contribution by Directing