What is the role of the financial sector in a mixed economy?

Economics Mixed Economy Questions



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What is the role of the financial sector in a mixed economy?

The role of the financial sector in a mixed economy is to facilitate the flow of funds between savers and borrowers, allocate capital efficiently, provide financial services such as banking and insurance, and contribute to overall economic stability and growth. It also plays a crucial role in mobilizing savings, channeling investments, and providing access to credit for individuals, businesses, and governments. Additionally, the financial sector helps in the formation of capital, promotes entrepreneurship, and supports the development of various sectors of the economy.