Economics · Financial Deepening
Financial institutions contribute to financial deepening when they widen the range, access, and efficiency of savings and investment channels in the economy. Financial deepening broadly implies:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1decline in saving behavior because of easy credit
- 2higher inflation due to rapid monetization
- 3an increased ratio of financial assets to GDP and greater access to diverse financial services✓
- 4complete substitution of capital markets by banks
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an increased ratio of financial assets to GDP and greater access to diverse financial services
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