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Finance

What You Will Learn in This Chapter

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What is meant by the financial system. sWhat is meant by monetary policy. sThe ways in which the financial system contributes to economic well-being—by transferring resources from surplus to deficit spending units; by providing a variety of financial instruments to participants; by providing a reliable and efficient payment system; by providing for a better allocation of risk in the economy; and by imposing discipline on business management. Some basic features of the financial system that will keep coming up in our study.

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