Decentralized market-based financial systems improve the allocation of saving by:

Question

Quizplus · Accepted Answer

Decentralized market-based financial systems provide information and risk-sharing services that help to improve the allocation of savings. This allows investors to make better investment decisions and manage risk more efficiently, which can lead to better overall outcomes in terms of returns and economic growth. While eliminating the need for financial intermediaries can be a potential benefit of decentralized systems, it is not necessarily the primary way in which they improve allocation of savings. Insuring capital gains exceed dividend payments and matching net capital inflows to net capital outflows are also important considerations in financial systems, but again, they are not the primary ways in which a decentralized system improves allocation of savings.

Decentralized Market-Based Financial Systems Improve the Allocation of Saving By