Question

What role does the financial system play in economic growth?

a.

Facilitating international trade

b.

Mobilisation of savings, formation of capital, and canalizing funds into the production process

c.

Managing inflation rates

d.

Regulating government expenditures

Posted under IC 89 Management Accounting

Answer: (b).Mobilisation of savings, formation of capital, and canalizing funds into the production process Explanation:The financial system plays a crucial role in economic growth by mobilizing savings, forming capital, and channeling funds into the production process.

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Q. What role does the financial system play in economic growth?
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