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What is Financial System: Savings and Investment about?
The financial system involves financial institutions that match savers who supply funds with borrowers who demand funds. Savers receive their funds back with interest, while borrowers pay back the funds with interest. The financial system includes bond and stock markets. Bonds are certificates of debt that pay interest, while stocks represent ownership in a company. Financial intermediaries like banks take in deposits and use them to issue loans, earning a profit on the interest rate spread. The amount hous
- Author
- Chau Giang
- Language
- EN