The parts of an economy that have to do with the borrowing, investing, or transferring of money are collectively referred to as the _____ system.

The parts of an economy that have to do with the borrowing, investing, or transferring of money are collectively referred to as the financial system.

The financial system encompasses various components, including financial markets, institutions, instruments, and regulations that facilitate the flow of funds between savers, investors, and borrowers. Key components of the financial system include banks, stock markets, bonds, and other financial assets that help in efficient resource allocation and risk management within the economy. This system plays a critical role in economic development as it allows for mobilizing savings for investments, thus fueling growth and entrepreneurship. By providing a mechanism to assess risk and liquidity, the financial system supports everyday transactions and enables businesses to operate and expand.