Which of the following are functions of a financial system?
1) The operation of a payments system.
2) Providing the means of portfolio adjustment.
3) Helping to reduce unemployment.
4) Channelling funds between lenders and borrowers.
5) Helping speculators to bet on price movements.
A)1 and 5
B)2, 3 and 5
C)1, 2 and 4
D)2 to 5

Question

Quizplus · Accepted Answer

1, 2, and 4 are core functions of a financial system. It facilitates payments, allows for portfolio adjustments (e.g., diversification or risk management), and channels funds from savers to borrowers for investment purposes. Reducing unemployment and helping speculators are not primary functions of a financial system.

Which of the Following Are Functions of a Financial System