One of the most important contributions of the global financial system to our daily lives is in permitting businesses, households and governments to adjust their financial position from that of net borrower (DBU) to net lender (SBU) and back again, smoothly and efficiently.

Question

Quizplus · Accepted Answer

The global financial system facilitates the movement of funds between those who have a surplus (savers or lenders) and those who have a deficit (borrowers), allowing for efficient capital allocation. This enables businesses, households, and governments to transition between being net borrowers (in need of funds) and net lenders (having excess funds) smoothly, supporting economic activities and financial stability.

One of the Most Important Contributions of the Global Financial