By providing and communicating information, the financial system Group of answer choices A. relieves individual savers from the necessity of searching out individual borrowers. B. eliminates the risk in investing in the stock market. C. reduces the difference between the return on three-month U. S. Treasury bills and the return on thirty-year U. S. Treasury bonds. D. guarantees investors a reasonable return on their money.

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Business

Bryan

21 December, 04:13

By providing and communicating information, the financial system Group of answer choices A. relieves individual savers from the necessity of searching out individual borrowers. B. eliminates the risk in investing in the stock market. C. reduces the difference between the return on three-month U. S. Treasury bills and the return on thirty-year U. S. Treasury bonds. D. guarantees investors a reasonable return on their money.

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Zoie Kelley · Answer 1

A. relieves individual savers from the necessity of searching out individual borrowers.

Explanation:

A financial system comprises of a number of institutions like banks, stock exchange, and insurance firms that facilitates exchange of funds.

The major function of the financial system is to provide a platform where individuals or companies with surplus funds who are the savers can lend to other individuals or companies, i. e. the borrowers, that have shortage of funds but want to invest.

Institutions like banks, stock exchange, and insurance firms accumulate funds from the savers or lenders and provide and communicate information to the borrowers about the availability of funds that can be loaned to them at specified interest to compensate the savers.

The institutions are the intermediary between the savers and borrowers make it unnecessary for the savers and borrowers to know each other in the process.

Therefore, by providing and communicating information, the financial system relieves individual savers from the necessity of searching out individual borrowers.