The financial systemlong dasheither financial markets or financial intermediarieslong dashprovides savers and borrowers with all of the following except: A. The financial system provides security to savers by warranting that their funds are fully insured against loss. B. The financial system provides liquidity to savers by giving them the opportunity to buy and sell their financial securities. C. The financial system provides savers with facts and information about borrowers and about expected returns on their financial investments. D. The financial system provides risk sharing to savers by giving them the opportunity to diversify their funds among different investment choices.

Question

Business

Bernice

21 October, 14:52

The financial systemlong dasheither financial markets or financial intermediarieslong dashprovides savers and borrowers with all of the following except: A. The financial system provides security to savers by warranting that their funds are fully insured against loss. B. The financial system provides liquidity to savers by giving them the opportunity to buy and sell their financial securities. C. The financial system provides savers with facts and information about borrowers and about expected returns on their financial investments. D. The financial system provides risk sharing to savers by giving them the opportunity to diversify their funds among different investment choices.

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Answers (1)

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Noelle Meadows · Answer 1

The correct answer is A. The financial system provides security to savers by warranting that their funds are fully insured against loss.

Explanation:

The financial system is the set of institutions that allow the integration between savings and investment in an economy; that is to say, through this system the resources of the savers reach the investors through two forms of financing: indirect or direct.