Question

Put the following steps of the financial cycle in the correct order. I. Money flows to companies who use it to fund growth through new products. II. People invest and save their money. III. Money flows back to savers and investors. Group of answer choices

Answer 1

II., I., III.

Step-by-step explanation:

Well initially people tend to invest the money, and because of this investment businesses grow.

When people invest they buy equity or debt instruments in the company, directly or indirectly and then the company acquires these funds.

After that the company invests these funds in producing the products, making them reach the consumers.

Once consumers buy the products, the company generates the revenue.

When the revenue is generated the profits are distributed to equity holders, or investors and also in form of interest to debt instrument holders.