The function of the financial system that consists of providing a means of raising funds by converting securities and other assets into cash balances is called the:
A) Savings function
B) Wealth function
C) Credit function
D) Liquidity function
E) None of the above

Question

Quizplus · Accepted Answer

The liquidity function of the financial system allows for the conversion of securities and other assets into cash, facilitating the raising of funds by providing liquidity to assets that might otherwise be difficult to convert into cash quickly.

The Function of the Financial System That Consists of Providing