Asked by Katelyn Sauber on Jul 02, 2024
Verified
The main purpose of an economy's financial system is to facilitate the transfer of funds from:
A) financial middlemen to financial intermediaries.
B) consumer savers to business investors.
C) primary claimholders to secondary claimholders.
D) lenders to financial intermediaries.
Consumer Savers
Individuals or entities that prioritize saving over spending, often seeking to maximize their financial well-being and future security.
Financial System
An intricate network of financial institutions, markets, and instruments that facilitate the exchange of funds and allocation of resources in an economy.
Business Investors
Individuals or entities that allocate capital with the expectation of receiving financial returns, typically into companies or projects.
- Learn about the various categories of markets and their operations within the financial ecosystem.
Verified Answer
SN
sibulele novukela7 days ago
Final Answer :
B
Explanation :
The financial system's primary purpose is to facilitate the transfer of funds from consumer savers to business investors. This is achieved through financial intermediaries such as banks, insurance companies, and investment firms that act as the bridge between savers and borrowers. The financial system's overall goal is to allocate funds efficiently to support economic growth and development.
Learning Objectives
- Learn about the various categories of markets and their operations within the financial ecosystem.