The allocation of resources between those who want to save and those who want to borrow is accomplished through:
A) the velocity of money.
B) fiscal policy.
C) the financial system.
D) foreign trade.

Question

Quizplus · Accepted Answer

The allocation of resources between savers and borrowers is done through the financial system, which includes banks, financial markets, and other intermediaries. Savers deposit money into banks and other financial institutions, which then lend that money out to borrowers who need it to finance their businesses or other ventures. The financial system plays a critical role in facilitating this process and ensuring that the flow of funds between savers and borrowers is smooth and efficient.

The Allocation of Resources Between Those Who Want to Save