From health tips to tech hacks, find it all on IDNLearn.com. Our platform is designed to provide reliable and thorough answers to all your questions, no matter the topic.
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
Thank you for contributing to our discussion. Don't forget to check back for new answers. Keep asking, answering, and sharing useful information. IDNLearn.com has the solutions you’re looking for. Thanks for visiting, and see you next time for more reliable information.
