In the financial system, savers transfer funds to borrowers in exchange for

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In the financial system, savers typically transfer funds to borrowers in exchange for financial securities, such as stocks, bonds, or other instruments that represent a claim on future financial returns. While cash or gold could also be used in exchange for goods or services, they are not typically used in the context of lending or borrowing activities. Derivative securities are a specific type of financial instrument that derive their value from an underlying asset or set of assets, and may be used for speculative or risk management purposes, but are not typically used in direct lending or borrowing activities.

In the Financial System, Savers Transfer Funds to Borrowers in Exchange