The financial system contributes to long-run economic growth by channelling funds from savers to businesses for investment spending.

Question

Quizplus · Accepted Answer

This is true. The financial system plays a crucial role in facilitating the flow of funds from savers to businesses for investment spending. This allocation of financial resources helps businesses to expand their operations, invest in new technologies, and create better products and services, which ultimately stimulates economic growth and development over the long term.

The Financial System Contributes to Long-Run Economic Growth by Channelling