Join ExamsbookAnswer : 2. "Match one person's savings with another person's investment"
The primary Economic function of the Financial system is to5
Q: The primary Economic function of the Financial system is to
- 1Providing experts advice to investors and saversfalse
- 2Match one person's savings with another person's investmenttrue
- 3Keeping interest rates lowfalse
- 4Match one person's consumpion expenditure with another person's capital expenditurefalse
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Answer : 2. "Match one person's savings with another person's investment"
Explanation :
Answer: B) Match one person's savings with another person's investment Explanation: The primary Economic function of the Financial system is to match one person's savings with another person's investment. As a key component of the financial system, banks allocate funds from savers to borrowers in an efficient manner. They provide specialized financial services, which reduce the cost of obtaining information about both savings and borrowing opportunities. These financial services help to make the overall economy more efficient.