The financial system determines:
A) The cost of credit
B) How much credit is available
C) The prices of securities
D) The quantity of securities issued by borrowers
E) All of the above

Question

Quizplus · Accepted Answer

The financial system plays a crucial role in determining the cost of credit, how much credit is available, the prices of securities, and the quantity of securities issued by borrowers. It encompasses various institutions, markets, and instruments that facilitate the flow of funds between savers and borrowers, thereby influencing all these aspects.

The Financial System Determines