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Which of the following acts as a vehicle for mobilising and transferring the economy's surplus to the ultimate users ?
Government policy
Financial institutions
Man power
Commercial centers
None of the above
Financial institutions
The correct answer is Financial institutions . Key Points Financial institutions play a critical role in mobilizing and transferring the economy's surplus to its ultimate users, such as businesses, governments, and individuals. These institutions ...
The correct answer is Financial institutions. and monetary policies (interest rates, money supply).
Manpower
Manpower refers to the human workforce involved in the production of goods and services.
Though manpower is an essential resource for executing economic activities, it does not perform the function of financial intermediation or transferring surplus funds.
Commercial Centers
Commercial centers are hubs for trade and commerce, facilitating the buying and selling of goods and services.
While they support economic activity and growth, they do not act as intermediaries in mobilizing or allocating economic surplus.