The main purpose of an economy's financial system is to facilitate the transfer of funds from

Question

Quizplus · Accepted Answer

The financial system of an economy primarily works as a mediator between surplus spending units (those who have a surplus of funds) and deficit spending units (those who require funds) and facilitates the transfer of funds through various channels, such as banks, financial institutions, and markets. The financial intermediaries act as facilitators and use the funds deposited by the surplus units to lend it to those who require it, such as individuals and businesses. Hence, option B is the correct choice. Other options are not directly related to the functioning of the financial system in an economy.

The Main Purpose of an Economy's Financial System Is to Facilitate