The institutions that bring together savers, borrowers, investors, and insurers in a set of interconnected markets where people trade financial products make up the:
A) financial system.
B) money system.
C) money market.
D) market for loanable funds.

Question

Quizplus · Accepted Answer

The financial system is composed of various institutions and markets that facilitate the transfer of funds between savers, borrowers, lenders, investors, and insurers. It includes banks, financial intermediaries, stock and bond markets, insurance companies, and regulatory agencies. The other options (B, C, D) are either too narrow (money system) or do not encompass all the components of the financial system (money market and market for loanable funds).

The Institutions That Bring Together Savers, Borrowers, Investors, and Insurers