Participants of financial system reduce demand for their funds if economic growth in

A. domestic market is stagnant
B. domestic market is not stagnant
C. global market is stagnant
D. global market is not stagnant
✅ The correct answer is option A.
Participants of financial system reduce demand for their funds if economic growth in domestic market is stagnant. A financial system is the set of global, regional, or firm-specific institutions and practices used to facilitate the exchange of funds. Financial systems can be organized using market principles, central planning, or a hybrid of both.

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