The Main Purpose of an Economy's Financial System Is to Facilitate

question 6

Multiple Choice

The main purpose of an economy's financial system is to facilitate the transfer of funds from

• A)financial middlemen to financial intermediaries
• B)surplus spending units to deficit spending units
• C)primary claimholders to secondary claimholders
• D)lenders to financial intermediaries

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Definitions:

TANF

Temporary Assistance for Needy Families, a government program that provides financial aid to eligible low-income families.

Welfare Payments

Financial assistance payments made by the government to individuals or families, particularly those who are unemployed, disabled, or on low income.

Earned-Income Tax Credit

A returnable tax credit aimed at individuals and families with low to moderate income who work, especially those who have children.

Wage Subsidy

A financial incentive given by governments to employers to encourage the hiring of certain individuals, often used to reduce unemployment in disadvantaged groups.