2. Financial system: What does a competitive financial system imply about interest rates? 3. Financial system: What is the difference between saver-lenders and borrower-spenders, and who are the major representatives of each group? 4. Financial markets: List the two ways in which a transfer of funds takes place in an economy. What is the main difference between these two? 5 Fi inancial markets: Suppose you own a security that you know can be easily sold in the