An effective financial system needs:
A)an efficient monetary system
B)to be able to create capital by channeling savings into investment
C)markets in which to buy and sell claims to wealth
D)all of the above

Question

Quizplus · Accepted Answer

An effective financial system requires all of the above components. An efficient monetary system is necessary to control inflation and establish stable pricing. The ability to channel savings into investment generates capital that can be used for economic growth. Lastly, markets to buy and sell claims to wealth create a system of exchange that allows people to manage their financial resources effectively.

An Effective Financial System Needs