Asked by Nicole Behne on Apr 26, 2024
Verified
The financial system describes the process by which funds flow from savers to users.
Financial System
The complex of institutions, including banks, markets, and regulators, that facilitate the flow of funds between savers and borrowers.
- Elucidate on how funds circulate in the financial system, highlighting the positions of households and companies as either savers or borrowers.
Verified Answer
MR
Melony RaskinApr 27, 2024
Final Answer :
True
Explanation :
The financial system facilitates the flow of funds from savers, who have excess funds, to users or borrowers, who need funds for various purposes such as investment, consumption, or business expansion.
Learning Objectives
- Elucidate on how funds circulate in the financial system, highlighting the positions of households and companies as either savers or borrowers.
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