Register
In the circular flow of income and spending, financial institutions … [1] act as an intermediary between those who have surplus funds and those who have deficit funds. [2] are not always useful, as households
80.2k views
5 votes
In the circular flow of income and spending, financial institutions …

[1] act as an intermediary between those who have surplus funds and those who have deficit funds.
[2] are not always useful, as households generally spend all their available funds.
[3] create an injection into the flow by collecting savings from participants with surplus units only; therefore, there is no need to provide funds to deficit units.
[4] generally exist to collect investment spending and transform it into savings.

User Ryflex
by
4.8k points

1 Answer

7 votes

Answer:

1] act as an intermediary between those who have surplus funds and those who have deficit funds.

Step-by-step explanation:

User Majenko
by
5.7k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

5.9m questions

7.7m answers

Other Questions

Demonstrate how binomial nomenclature is related to classification systems by identifying the genus name and the specific name of the domestic cat felis catus
The dark printed words on the page of a book are easily read because they are printed on a light ground. this is an example of the principle of ____________.
On august 1 the darius co. purchased a photocopy machine for $8,000. the estimated annual depreciation on the machine is $1,680. if the company prepares annual financial statements on december 31, the
When president obama was elected, the u.s. economy was in trouble, and has slid into a recession. consumer spending was low and getting worse. in an effort to stop the decline, president obama proposed
In a gallup poll of 1059 randomly selected adults, 39% answered "yes" when asked "do you have a gun in your home?"
Link Copied!