The financial system is primarily a means by which
A) funds are transferred from savers to borrowers.
B) money is put into circulation.
C) the government puts into operation its plans for the economy.
D) business firms distribute their goods.

Question

Quizplus · Accepted Answer

The financial system facilitates the transfer of funds from those who have excess funds (savers) to those who need funds (borrowers), allowing for investment and economic growth. Money may be put into circulation through financial transactions, but this is not the primary purpose of the financial system. Similarly, while the government may impact the financial system through regulation and policy, it is not the main driving force. Business firms may utilize the financial system, but they do not distribute their goods through it.

The Financial System Is Primarily a Means by Which