Section 1
Introducing the Financial System
Book
Version 3
By Boundless
By Boundless
Boundless Economics
Economics
by Boundless
3 concepts
Institutions, Markets, and Intermediaries
A financial intermediary is an institution that facilitates the flow of funds between individuals or other economic entities.
Role in Matching Savings and Investment Spending
Savings are income after-consumption and investment is what is facilitated by saving.
Role in Providing a Market for Loanable Funds
The loanable funds market is a conceptual market where savers (suppliers) and borrowers (demanders) are able to establish a market clearing.