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What is one way that financial institutions benefit the economy?

By approving increases in the federal deficit
By placing limits on the amount businesses spend
By reducing the amount people pay in taxes
By providing loans so people can open businesses

2 Answers

1 vote

Answer:

D. By providing loans so people can open businesses

Step-by-step explanation:

Business stimulate the economy thus improving it.

User Asra
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Answer:

By providing loans so people can open businesses

Step-by-step explanation:

Financial institutions act as intermediaries between the source and users of credit. By accepting deposits from the general public, financial institutions pool together resources that firms and individuals can borrow to start or expand their business.

Financial institutions include commercial banks, saving and credit unions, among others. They offer credit services to clients from the customers' deposits. The loans help individuals and firms start and grow their business, which leads to growth in the entire economy.

User Art Shendrik
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