An effective financial system must have
A)financial markets that hinder the transfer of financial assets among individuals,institutions,businesses,and governments.
B)financial institutions or intermediaries that inhibit capital formation either by channeling savings into investment in physical assets or by fostering direct financial investments by individuals in financial institutions and businesses.
C)an efficient monetary system that is comprised of a central bank and a banking system that is unable to create and transfer a stable medium of exchange called money.
D)several sets of policy makers who pass laws and inhibit decisions relating to fiscal and monetary policies.
E)none of the above are required

Question

Quizplus · Accepted Answer

An effective financial system requires financial markets that facilitate, not hinder, the transfer of financial assets, financial institutions that promote, not inhibit, capital formation, and a monetary system that can create and transfer a stable medium of exchange. None of the options A-D describe these necessary characteristics.

An Effective Financial System Must Have