Reading 55: Market Organization and Structure-LOS a 习题精选 table

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Session 13: Market Organization, Market Indices, and Market Efficiency
Reading 55: Market Organization and Structure

LOS a: Explain and illustrate the main functions of the financial system.

 

 

The main functions of the financial system most likely include:

A) determining the supply of money and determining equilibrium interest rates.

B) determining equilibrium interest rates and allocating capital to its most productive uses.

C) allocating capital to its most productive uses and determining the supply of money.

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The main functions of the financial system are to allow individuals and organizations to save, borrow, raise capital, and manage risks; to determine equilibrium rates of return that equate the amounts of lending and borrowing; and to allocate capital to its most productive uses. The money supply is typically controlled by countries’ central banks.