Final answer:
The financial system is a complex set of instructions, agents, practices, markets, transactions, claims, and liabilities relating to the financial aspects of an economy. Financial assets that can be easily transferred from one person to another without hindrance are called marketable assets. When the cost of credit declines and loanable funds become more readily available, businesses may reduce their investment.
The correct answer for question 1 is A.
Step-by-step explanation:
Financial system. The financial system refers to a set of complex and closely connected instructions, agents, practices, markets, transactions, claims, and liabilities relating to the financial aspects of an economy.
For question 2, the correct answer is B. Marketable Assets. Financial assets are those that can be easily transferred from one person to another without much hindrance. Marketable assets are assets that can be bought, sold, or traded in a financial market.
Finally, for question 3, when the cost of credit declines and loanable funds become more readily available, businesses may reduce their investment (answer B) as they can access funds at a lower cost.