According to Merton (1995), Financial Systems Perform Six Functions

Multiple Choice

According to Merton (1995) , financial systems perform six functions.The flow-of-funds function is:

A) to provide the means for the settlement of commercial transactions
B) the exchange of funds for a period requiring the user to compensate the supplier for the use of their funds
C) to provide ways for participants in the financial system to transfer and manage risk
D) to overcome information asymmetry
E) to provide ways of dealing with the incentive problems that arise in financial contracting.