GK
INDIAN ECONOMY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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tax sharing
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grant-in-aids
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loans
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All the above
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Detailed explanation-1: -The correct answer is All of the above. Key Points Our financial system has provided for the transfer of resources from the centre to the states; the important means of resource transfers are tax sharing, grant-in-aids and loans.
Detailed explanation-2: -A financial system functions as an intermediary between savers and investors. It facilitates the flow of funds from the areas of surplus to the areas of deficit. It is concerned about the money, credit and finance. These three parts are very closely interrelated with each other and depend on each other.
Detailed explanation-3: -The role of the financial system is to intermediate between lenders and borrowers and provide avenues for saving and help investors find their financing needs. The financial markets impact growth by channeling saving to firms and improving the allocation of capital.