The main function of financial institutions is to
A) offer trust services.
B) create money.
C) provide loans to small businesses.
D) offer chequing and savings accounts.
E) facilitate the flow of money from sectors with surpluses to those with deficits.

Question

Quizplus · Accepted Answer

The main function of financial institutions is to facilitate the flow of money from sectors with surpluses to those with deficits. This includes providing loans, offering chequing and savings accounts, and offering trust services. However, the core purpose of financial institutions is to ensure that money is being used efficiently and effectively throughout the economy by transferring funds from individuals or organizations with excess funds to those who need it. This includes channeling savings into investment opportunities and providing liquidity to businesses and individuals.

The Main Function of Financial Institutions Is to