The functions of the financial system include:
A)providing ways of dealing with the incentive problems that arise in financial contracting.
B)generating and disseminating information that assists decision making.
C)facilitating the flow of funds.
D)all of the above.

Question

Quizplus · Accepted Answer

The financial system encompasses all these functions: it addresses incentive problems in financial contracts, generates and disseminates information for decision-making, and facilitates the flow of funds between savers and borrowers.

The Functions of the Financial System Include