Question: How does a well-functioning financial system increase savings and investment spending, holding the budget balance and any capital flows fixed? Select all that apply. a)

How does a well-functioning financial system increase savings and investment spending, holding the budget balance and any capital flows fixed? Select all that apply.

a) It provides savers with liquid assets.

b) It lowers investment risk.

c) It facilitates the flow of savings to their most productive uses.

d) It lowers the costs of negotiating financial transactions.

Please explain shortly reason for correct options.Also explain other options.I will give

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