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Economics Mod 5

Economics Mod 5 - Financial Markets

QuestionAnswer
What are financial markets? Financial markets provide products that provide a return for those who have excess funds and makes these funds available for others.
Who are net borrowers and net savers? Individuals are net savers, businesses are net borrowers
What is the role of financial intermediaries? Financial intermediaries accumulate funds from net savers and lend it to net borrowers.
What is the role of financial markets? Financial markets channel funds from economic units with a surplus of funds to economic units with a lack of funds.
What are savings? Savings are the proportion in income that is not spent. They are leakages in the economy.
Created by: MrMemer
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