Vidyalelo
Management · Q485

International Finance and Treasury

Graduate and Post Graduate · Management · question 485

Q485

Participants of financial system reduce demand for their funds if economic growth in

A.
domestic market is stagnant
Answer
B.
domestic market is not stagnant
C.
global market is stagnant
D.
global market is not stagnant

Answer: Option A

Solution

Answer: Option A
Solution:
Participants of financial system reduce demand for their funds if economic growth in domestic market is stagnant. A financial system is the set of global, regional, or firm-specific institutions and practices used to facilitate the exchange of funds. Financial systems can be organized using market principles, central planning, or a hybrid of both.