Question

Select the correct answer
One way in which financial institutions contribute to the development of a market economy is by
A. charging interest on loans they approve
B. imposing tariffs on consumers purchases
C. making loans to businesses and consumers
D. setting tax rates on retirement accounts and investments

Answer 1

The answer is C. I think

Answer 2

Answer:

C. making loans to businesses and consumers

Explanation:

One way in which financial institutions contribute to the development of a market economy is by "making loans to businesses and consumers"

This is because the loans to businesses will help the businesses to produce or make available demanding goods and services to the consumers.

Also, the loans to consumers will help the consumers to quickly make purchases at the point of sale without necessarily dipping their hands into other people's money.