Channeling funds to individuals with productive investment opportunities is the function of ________.

Question

Quizplus · Accepted Answer

The financial sector, which includes banks, financial markets, and other financial intermediaries, channel funds from savers to borrowers with productive investment opportunities. State, local and federal governments may also play a role in funding certain projects, but this is not their primary function. The central bank (such as the Federal Reserve in the United States) primarily focuses on regulating the money supply and interest rates, rather than directly channeling funds to individuals or businesses. Therefore, the best choice for this question is A, the financial sector.

Channeling Funds to Individuals with Productive Investment Opportunities Is the Function