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Money is channeled through financial institutions such as banks. A saver saving with a bank account seeks to keep the money in the bank as it earns him interest. A borrower in need of a loan applies for a loan at the bank and if he is eligible, gets the loan at an interest rate. The borrower may chose to use the funds to invest in a business venture and thus be becomes an investor.

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What is fiMutual funds are financial institutions that lend the funds that savers provide to borrowers.ancial institutions that lend the funds that savers provide to borrowers?

Mutual funds are investment vehicles that pool money from multiple investors to purchase a diversified portfolio of stocks, bonds, or other securities. Instead of lending funds directly, they invest the collected capital to generate returns for their investors. This allows individuals to access a professionally managed investment option while spreading risk across various assets. Investors buy shares in the mutual fund, and their returns depend on the fund's performance.


Which explains a way banks channel money from savers to borrowers?

Banks lend the money from savings accounts to people who need loans. (Go do your study island instead of looking them up) I'm just kidding. 😂


How do banks make money on reverse mortgages?

Banks make money on reverse mortgages by charging fees, interest, and closing costs to borrowers. They also earn money through servicing fees and by selling the loans to investors.


Institutions in the economy that help to match one person's savings with another person's investments?

Savers by definition have an excess of funds which need to be invested to obtain a return. Borrowers (who can be individuals, small businesses, or international corporations) by definition need funds to invest in business that produce goods and services that promote economic growth and produce profits. Savers are willing to lend to borrowers in order to earn a return on their money and borrowers are willing to pay interest based on a projected rate of return on their investments. Savers and borrowers are matched directly together through the financial markets which sell stocks and bonds and indirectly through financial intermediaries such as banks, savings and loans, and large investment companies that sell stock and bond mutual funds. The US capital markets are the deepest in the world in terms of liquidity and efficiency in matching savers and borrowers at rates of return acceptable to both parties.


Why is the channeling of funds from savers to spenders so important to the company?

consumers (savers) save money. Investors (spenders) spend money. Spending money is what keeps the economy going and money circulating and flowing. If everyone saved money and didn't spend it, then our economy would stop. Credit would dry up, and assets would become illiquid. It is the job of businesses (and some would say the government) to entice savers to invest in new cars, clothes, toothbrushes, etc, etc. When the common opinion of the economy is negative, it becomes harder and harder to convince savers to spend


What is the relationship between lenders and borrowers?

Lenders have something (usually money) that the borrowers want; and the Borrowers have something that the Lenders want (their money back).


What is financial system?

Financial system is a system used by organizationÕs management to exercise financial control and accountability. It allows transfer of money between savers and borrowers.


How much money did The Borrowers gross worldwide?

The Borrowers grossed $54,045,832 worldwide.


Why depository institutions are transferred from savers to business?

The three ways money is transferred from savers to businesses


How do lenders make money from borrowers?

Lenders make money from borrowers by charging interest on the money they lend. Interest is a fee that borrowers pay for the privilege of borrowing money, and it is typically a percentage of the total amount borrowed. This allows lenders to earn a profit on the money they lend out.


How much money did The Borrowers gross domestically?

The Borrowers grossed $22,619,589 in the domestic market.


How do you start a business with no money?

By finding investors. Where are these investors