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What is the relationship between the financial system and the economy

User Vdex
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Answer:

Financial system promotes capital market. A dynamic capital market is capable of attracting funds both from domestic and abroad. With more capital, investment will expand and this will speed up the economic development of a country

Simply

Financial markets help to efficiently direct the flow of savings and investment in the economy in ways that facilitate the accumulation of capital and the production of goods and services.

Step-by-step explanation:

User Mynk
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