IDNLearn.com makes it easy to find answers and share knowledge with others. Our community provides accurate and timely answers to help you understand and solve any issue.
Sagot :
In order to properly allocate capital to where it is most beneficial, financial institutions establish a market for money and assets.
A corporation engaged in the business of handling financial and monetary activities, such as deposits, loans, investments, and currency exchange, is referred to as a financial institution (FI).
Financial institutions are vital because they offer a market for money and assets, allowing for the effective allocation of capital to its most advantageous uses. One example is when a bank lends money to borrowers after receiving deposits from clients. Any one person is unlikely to be able to discover a suitable borrower or understand how to service the loan without the bank acting as a middleman. The depositor can therefore obtain interest through the bank. Similar to this, investment banks locate investors to whom they advertise a company's shares or bonds.
To know more about financial institutions
brainly.com/question/29630223?referrer=searchResults
#SPJ4
We appreciate every question and answer you provide. Keep engaging and finding the best solutions. This community is the perfect place to learn and grow together. IDNLearn.com is committed to your satisfaction. Thank you for visiting, and see you next time for more helpful answers.
