Which task(s) is/are associated with the financial system? I. reducing transactions costs
II) reducing risk
III) providing liquidity

Question

Quizplus · Accepted Answer

All three tasks - reducing transactions costs, reducing risk, and providing liquidity - are associated with the financial system. The financial system plays a crucial role in reducing the transactions costs of transferring funds between savers and borrowers. It also helps in reducing risks associated with financial transactions by providing insurance and other risk-management instruments. Additionally, the financial system provides liquidity to investors by allowing them to quickly convert their assets into cash.

Which Task(s) Is/are Associated with the Financial System? I