Question

In 1 or 2 sentences, describe how money that you save in the bank can be channeled to an investor.

Answer 1

You simply right a check or make an electronic transfer to the establishment you are investing in. If it is an monthly investment, you can set up a once a month monthly pay.

Hope this helps.

Answer 2

Money is channeled through financial institutions, mainly through banks. A saver with a bank account wants to keep the money in the bank because it earns him interest. A borrower who needs loan applies for that and he gets the loan if he is eligible. The borrower may chose to use the funds for the investment and thus to become an investor.