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What are two roles of the financial sector? The financial sector facilitates the supply of money, acting as an agent of the Fed. Its second
What are two roles of the financial sector?
- The financial sector facilitates the supply of money, acting as an agent of the Fed. Its second role is to transfer money, outflows from the monetary stream, back into banks.
- The financial sector facilitates taxes, acting as a lubricant to the fiscal side of the economy. Its second role is to transfer taxes, outflows from the spending stream, back into income.
- The financial sector facilitates production, acting as a lubricant to the economy. Its second role is to transfer investment, outflows from the saving stream, back into saving.
- The financial sector facilitates trade, acting as a lubricant to the economy. Its second role is to transfer saving, outflows from the spending stream, back into spending.
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