A financial system's primary concern is funneling money from:
A) wealthy individuals to non-wealthy individuals.
B) lender-savers to borrower-spenders.
C) borrower-spenders to lender-savers.
D) the government to wealthy individuals.

Question

Quizplus · Accepted Answer

A financial system is designed to facilitate the transfer of funds from lender-savers (those who have excess funds and are willing to lend them out) to borrower-spenders (those who need the funds to invest, spend or finance their activities). This flow of funds enables economic growth and development by making capital available where it is needed. Wealthy and non-wealthy individuals can both be either lenders-savers or borrower-spenders in the financial system, so A and C are not correct. D is also incorrect as the primary concern of the financial system is not to funnel money from the government to wealthy individuals.

A Financial System's Primary Concern Is Funneling Money From