One of the essential contributions of the money and capital markets is to direct the savings of older individuals into the hands of younger individuals who desire to improve their current standard of living by borrowing.

Question

Quizplus · Accepted Answer

Money and capital markets facilitate the transfer of funds from savers, who often tend to be older individuals with excess funds, to borrowers, who can be younger individuals or entities looking to invest in opportunities to enhance their standard of living or expand businesses. This process efficiently allocates resources in the economy.

One of the Essential Contributions of the Money and Capital