Question

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

Answer 1

Step-by-step explanation:

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

Answer 2

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.