The primary role of the financial system is to
A)allow the Fed to conduct monetary policy.
B)act as fiscal agent for the U.S. government.
C)print money.
D)channel the flow of funds from net lenders to net borrowers

Question

Quizplus · Accepted Answer

The primary role of the financial system is to channel the flow of funds from net lenders to net borrowers. This means that the financial system helps to allocate capital and credit to individuals and businesses that need it in order to invest, grow and contribute to economic growth. While the other answer choices are related to the financial system, they are not its primary role.

The Primary Role of the Financial System Is to