Question

Explain the characteristics of financial institutions as component of financial system?

Answer 1

Answer:

Well functioning financial system are characterized by financial instruments that help people solve financial problems, liquid markets with low treading costs (operationally efficient), timely financial disclosures resulting in market prices that reflect available information ( informationally efficient) and therefore prices that move primarily with changes in fundamental value instead of liquidity demands. Well functioning markets unlimitedly lead to efficient allocations which use resources where they are most valuable.....

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Answer 2

Answer:

heya!!!

Explanation:

Well functioning financial system are characterized by financial instruments that help people solve financial problems, liquid markets with low treading costs (operationally efficient), timely financial disclosures resulting in market prices that reflect available information ( informationally efficient) and therefore prices that move primarily with changes in fundamental value instead of liquidity demands. Well functioning markets unlimitedly lead to efficient allocations which use resources where they are most valuable.....

hope it helps!!

mark as brainliest!!!