Why is well-functioning financial system is a critical ingredient in achieving long-run growth? It ensures that savings are channeled towards productive investment projects efficiently. It ensures that savings are avaialble during economic downturns. It allows funds for economic recoveries. It facilitates international trade.

Microeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506893
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter14: Investment, The Capital Market, And The Wealth Of Nations
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Why is well-functioning financial system is a critical ingredient in achieving long-run growth?
It ensures that savings are channeled towards productive investment projects efficiently.
It ensures that savings are avaialble during economic downturns.
It allows funds for economic recoveries.
It facilitates international trade.
Transcribed Image Text:Why is well-functioning financial system is a critical ingredient in achieving long-run growth? It ensures that savings are channeled towards productive investment projects efficiently. It ensures that savings are avaialble during economic downturns. It allows funds for economic recoveries. It facilitates international trade.
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