The financial system is made up of the:
A) institutions that bring together savers, borrowers, investors, and insurers in a set of interconnected markets where people trade financial products.
B) government's offices that keep watch over all transactions conducted between savers and lenders.
C) government's offices that regulate over all transactions conducted between borrowers and savers.
D) government and monetary authority.

Question

Quizplus · Accepted Answer

The financial system is a network of institutions that bring together savers, borrowers, investors, and insurers to facilitate the flow of funds between them. These institutions operate in interconnected markets where people trade financial products such as stocks, bonds, mutual funds, and insurance policies. Therefore, option A is the best choice. Options B, C, and D are incorrect because they focus on the government's role in overseeing financial transactions, rather than describing the financial system as a whole.

The Financial System Is Made Up of The