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13 January, 10:26

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

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Answers (2)
  1. 13 January, 12:01
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    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.
  2. 13 January, 12:26
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    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
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