Three essential needs of a well-operating financial system include all of the following except
A) an efficient national payments system.
B) an elastic or flexible money supply.
C) a bank insurance system.
D) a lending/borrowing mechanism.

Question

Quizplus · Accepted Answer

While an efficient national payments system, an elastic or flexible money supply, and a lending/borrowing mechanism are all essential needs of a well-operating financial system, a bank insurance system is not. While having a bank insurance system can be beneficial for protecting depositors and maintaining confidence in the financial system, it is not an essential need for a financial system to function properly.

Three Essential Needs of a Well-Operating Financial System Include All