The institutions that bring together savers, borrowers, investors, and insurers in a set of interconnected markets where people trade financial products is called the:
A) financial system.
B) money system.
C) market for interest rates.
D) market for loanable funds.

Question

Quizplus · Accepted Answer

The financial system is the set of institutions and markets that facilitate the transfer of funds between savers and borrowers, investors and issuers, and insurers and policyholders. It includes financial institutions such as banks, insurance companies, and investment firms, as well as financial markets such as the stock market, bond market, and commodity market. Therefore, option A is the most appropriate answer.

The Institutions That Bring Together Savers, Borrowers, Investors, and Insurers