The United States is considered to have a market-based financial system because:
I.stock market capitalization,as a percentage of GDP,is relatively high;
II.bank loans,as a percentage of GDP,are relatively low;
III.the U.S.has thousands of banks and insurance companies

Question

Quizplus · Accepted Answer

A market-based financial system is characterized by the importance of capital markets and securities as a source of financing in the economy, and the presence of a diverse range of financial intermediaries. In the United States, the stock market capitalization as a percentage of GDP is high, which is a characteristic of a market-based financial system. Additionally, the bank loans as a percentage of GDP are relatively low, suggesting that capital markets play a more important role in funding activities. Finally, the U.S has thousands of banks and insurance companies, indicating the presence of a diverse range of financial intermediaries.

The United States Is Considered to Have a Market-Based Financial