What is the primary role of the financial system in economic development?Question 1AnswerA.Wealth accumulationB.Environmental sustainabilityC.Resource allocationD.Population control
Question
What is the primary role of the financial system in economic development?Question 1AnswerA.Wealth accumulationB.Environmental sustainabilityC.Resource allocationD.Population control
Solution
The primary role of the financial system in economic development is C. Resource allocation. The financial system facilitates the exchange of funds between investors and savers. It allocates resources from those who have surplus funds (savers) to those who need it (investors). This helps in the growth of the economy.
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