Banks and other financial institutions provide the link between savers and economic investors in the macroeconomy. TRUE or FALSE
Business · High School · Thu Feb 04 2021
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Answer: TRUE. Banks and other financial institutions indeed serve as intermediaries between savers, who wish to deposit funds, and borrowers, who seek to invest or spend on goods and services. This function is crucial in the macroeconomy. When savers deposit their money in a bank, the bank can then lend out a portion of these funds to businesses or individuals looking to invest or purchase. This facilitates the flow of money and contributes to economic growth as it allows for investments that might not be possible without such financial intermediation.