The United States is considered to have a market-based financial system because
I.stock market capitalization, as a percentage of GDP, is relatively high;
II.bank loans, as a percentage of GDP, are relatively low;
III.the United States has thousands of banks and insurance companies

Question

Quizplus · Accepted Answer

I is true because the United States has one of the largest stock markets in the world, with market capitalization as a percentage of GDP being relatively high compared to other countries.

II is also true because the United States has a low percentage of bank loans compared to other countries. This means that businesses and individuals are more likely to obtain financing through markets, such as the stock market or bond market, rather than through traditional bank loans.

III is not a complete indicator of a market-based financial system, as many countries have multiple banks and insurance companies. Therefore, C is incorrect.

The United States Is Considered to Have a Market-Based Financial