Economics (MindTap Course List)
Solutions
Economics (MindTap Course List)
What is a financial system, and why would a country with a well-developed and fully functionally financial system be better off than a country without it?
Explain the financial system.
Financial system in an economy can be defined as the set of markets and institutions to facilitate the exchange of assets and risks. This means that it transfers the money between the savers and borrowers. The operations and functions of a financial system in a well-developed country are much better than in a less developed country due to certain reasons as listed below:
- A developed country provides more lending and borrowing opportunities, thereby expanding the financial system...
Chapter 12 Solutions
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