A well-functioning financial system does all of the following except:
A) foster economic growth by directing savings to its most productive use.
B) allocate risk among market participants.
C) eliminate risk through diversification.
D) direct resources from savers to borrowers.

Question

Quizplus · Accepted Answer

A well-functioning financial system does not eliminate risk through diversification, but rather spreads and reduces risk among market participants. This allows for more efficient allocation of resources and promotes economic growth.

A Well-Functioning Financial System Does All of the Following Except