Question: A well-functioning (developed and efficient) financial system will efficiently allocate funds from suppliers of funds (surplus units) to users of funds (deficit units). Would you

A well-functioning (developed and efficient) financial system will efficiently allocate funds from suppliers of funds (surplus units) to users of funds (deficit units). Would you agree with this statement? Include the following in your answer.

- Definition of a financial system

- Key components

- Surplus and deficit units

- Key surplus and deficit units in Australia.

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