A Market-Oriented Financial System Is an Effective Mechanism for Channelling

Multiple Choice

A market-oriented financial system is an effective mechanism for channelling funds from savers to borrowers with productive investment opportunities because it

A) reduces the risk faced by each saver.
B) shifts the risk of investing from borrowers to savers.
C) pools the costs of gathering information about prospective borrowers.
D) diversifies the risk of investing.
E) facilitates the direct lending of funds by savers to borrowers.