The Essential Requirements of a Well-Functioning Financial System Include an Efficient

question 80

True/False

The essential requirements of a well-functioning financial system include an efficient national payments system, a flexible money supply, and a lending/borrowing mechanism to help alleviate liquidity problems when they arise.

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Definitions:

In Writing

The term "in writing" refers to the requirement that certain agreements, contracts, or notices be recorded on paper or in a digital format to ensure legality and enforceability.

Guarantee

A formal assurance, typically by one party to another, that certain conditions will be fulfilled, including quality, performance, or durability of a product or service.

Primary Obligation

The fundamental duty or liability that a party is required to fulfill under a contract.

Indemnity

A contractual agreement between parties where one agrees to compensate the other for any loss or damage incurred.