An effective financial system must have:
A)several sets of policy makers who pass laws and make decisions relating to fiscal and monetary policies
B)an efficient monetary system for creating and transferring money
C)financial markets that facilitate the transfer of financial assets amongst individuals, institutions, and businesses
D)all of the above

Question

Quizplus · Accepted Answer

All of the given options are essential components of an effective financial system. Policy makers are responsible for formulating and implementing laws and regulations that contribute to a stable and sustainable economic environment. An efficient monetary system allows for the creation and transfer of money, which is the lifeblood of the economy. Financial markets provide opportunities for individuals, businesses, and institutions to invest, borrow, and lend funds, thereby facilitating economic growth and development. Taken together, these three components are necessary for a well-functioning financial system.

An Effective Financial System Must Have