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- Which of the following is not a primary participant in the financial marketplace? a. governments b. businesses c. military units d. individual householdsWhich of the following explains the relevance of financial institutions? a. Financial institutions spur economic activity by providing credit for business expansion. b. Financial institutions create profits for depositors. c. Financial institutions allow governments to print money. d. Financial institutions provide the main source of funding for start-ups.It analyzes the responsibility of the financial system in the demand for investment versus the supply of savings.
- Would the interest rate increase be more likely to hurt or help the financial institution’s profitability?One of the biggest problems for any economy is to figure out how to get or transfer money from people or firms who want to save (savers) to people or firms who want to borrow (investors). Explain how financial markets can help to solve this problem efficiently. Discuss how financial markets function and which tools they can offer to solve this problem. Discuss how financial systems are of crucial significance to adequate capital formation, which is indispensable to a speedy economic growth and development.One of the tasks of a Financial System include providing affordable loans to all consumers and firms.True or False
