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:
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A) |
determining the supply of money and determining equilibrium interest rates. | |
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B) |
determining equilibrium interest rates and allocating capital to its most productive uses. | |
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C) |
allocating capital to its most productive uses and determining the supply of money. | |
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. | 
发表于 2011-3-29 16:02
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