According to Merton (1995), Financial Systems Perform Six Functions

According to Merton (1995) , financial systems perform six functions.The function performed by the payment system is:

A) to provide the means for the settlement of commercial transactions
B) to arrange the flow of funds from surplus to deficit units
C) to provide ways for participants in the financial system to transfer and manage risk
D) to promote the pooling of funds
E) to provide ways of dealing with the incentive problems that arise in financial contracting.