The central role of ________ in a market economy is bringing together savers and borrowers.

Question

Quizplus · Accepted Answer

Financial intermediaries such as banks and other financial institutions play a central role in a market economy by bringing together savers and borrowers. They channel funds from savers to borrowers in the form of loans, and provide other financial services that facilitate investment and economic activity. While corporations and sole proprietors may also play important roles in the economy, they do not have the same direct role in connecting savers and borrowers. Stock exchanges are important for facilitating investment in publicly-traded companies, but they do not necessarily connect savers and borrowers directly.

The Central Role of ________ in a Market Economy Is