The financial system consists of financial _____, such as commercial banks, and financial _____, such as the stock market.

Question

Quizplus · Accepted Answer

The financial system is composed of both financial intermediaries (such as commercial banks) and financial markets (such as the stock market). Option A could be seen as a possible answer, but the term "allocations" is not commonly used when referring to financial institutions or markets. Option B is incorrect because "investments" are not equivalent to financial intermediaries or markets. Option D is close, but it uses the term "institutions" instead of "intermediaries," which is a more accurate term for this context.

The Financial System Consists of Financial _____, Such as Commercial