In two to four sentences, describe how money is channeled from savers to borrowers and then to investors

Cash is directed through money related organizations, for example, banks.

A saver sparing with a financial balance looks to keep the cash in the bank as it acquires him premium.

A borrower needing a credit applies for an advance at the bank and on the off chance that he is qualified, he gets the advance at a loan fee.

Direct Financing: Funds are lent straightforwardly from savers to spenders. Roundabout Financing: Where a middle person for example bank is included among benefactors and borrowers.

The borrower may utilized the assets to put resources into a business adventure and accordingly be turns into a financial specialist.

Customers go to the bank to save their money. The customers are the savers. The bank uses the saved money to give loans with interests to business men who have a business plan. The business men are the borrowers.

Investors use their corporations to obtain interest free loans from the banks as well