Question

The financial system of a country is important for​ long-run economic growth because :

A. most firms rely on their own retained earnings and do not use the financial system.
B. firms that use the financial system predominantly are being reckless.
C. firms need the financial system to acquire funds from households.
D. people can increase their wealth very quickly under a healthy financial system.

Answer 1

B. firms need the financial system to acquire funds from households

Step-by-step explanation:

A financial system allows businesses to borrow funds to finance purchases of capital equipment, to train workers and to adopt new technologies.