A Well-Functioning Financial System Does All of the Following Except

question 46

Multiple Choice

A well-functioning financial system does all of the following except:

• A) foster economic growth by directing savings to its most productive use.
• B) allocate risk among market participants.
• C) eliminate risk through diversification.
• D) direct resources from savers to borrowers.

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Definitions:

Patrilateral Parallel-cousin

A type of kinship relationship where children of a father's brother or a mother's sister are considered close relatives, often seen in cultures with strong patrilineal descent.

Parallel-cousin Marriage

A type of cousin marriage where individuals marry cousins from their parent's same sibling (e.g., two brothers' children or two sisters' children marrying each other).

Fraternal Polyandry

A form of marriage in which a woman is married to two or more men who are brothers, practiced in some cultures for economic and societal reasons.