Answer to Question #236044 in Economics for Jamilah

Question

Detail the relationship of the Zambia financial system and the economy using practical examples [40 Marks]

Answer 1

Businesses and industries are financed by the financial systems which lead to growth in employment and in turn increase economic activity and domestic trade. Financial intermediaries help improve investment efficiency, leading to higher economic growth.

The financial sector in Zambia is moderately developed and dominated by the banking sub-sector, followed by the insurance, pensions, microfinance, and capital markets sub sectors.