Describe key services that the financial system provides to savers. A. Economies of scale of information B. Liquidity C. Risk sharing D. All of the above

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Raina Bernard

Business

16 September, 20:12

Describe key services that the financial system provides to savers. A. Economies of scale of information B. Liquidity C. Risk sharing D. All of the above

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Calderon · Answer 1

A Economies of scale

B liquidity

Explanation:

Economies of scale of information occurs when a firm cuts cost leading to an increase in production. When more units of a good or service can be produced on a larger scale, with fewer input costs, economies of scale are said to be achieved.

Liquidity is defined as the ability to convert assets into a spendable form--money--quickly. It could also be defined the degree to which an asset or security can be quickly bought or sold in the market at a price reflecting its intrinsic value. In other words: the ease of converting it to cash.