An effective financial system must have
A)financial markets that facilitate the transfer of financial assets among individuals, institutions, businesses, and governments.
B)financial institutions or intermediaries that support capital formation either by channeling savings into investment in physical assets or by fostering direct financial investments by individuals in financial institutions and businesses.
C)an efficient monetary system that is comprised of a central bank and a banking system that is able to create and transfer a stable medium of exchange called money.
D)several sets of policy makers who pass laws and make decisions relating to fiscal and monetary policies.
E)all of the above are required

Question

Quizplus · Accepted Answer

An effective financial system must have all of the components mentioned, including financial markets for transfer of assets, financial institutions to support capital formation, an efficient monetary system to create and transfer stable money, and policy makers to enact necessary laws and policies. All of these components work together to create a functioning financial system.

An Effective Financial System Must Have