The main purpose of an economys financial system is to facilitate the transfer of funds from surplus

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The main purpose of an economy’s financial system is to facilitate the transfer of funds from surplus spending units to deficit spending units. Financial middlemen, such as investment bankers, bring together the surplus and deficit spending units in the capital markets so that funds can be transferred.

Financial intermediaries, such as commercial banks, receive primary claims from their borrowers and issue secondary claims to their lenders. Secondary claims have different risk and liquidity characteristics than primary claims. V=96

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