How can financial institutions (organisations like banks) contribute to the injection of money in the circular flow in an economy?
Question
Solution 1
Financial institutions, such as banks, play a crucial role in the circular flow of money in an economy. Here's how they contribute:
- Deposits and Loans: Banks accept deposits from individuals and businesses, which forms a significant part of the money supply in an economy. They then lend this Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob
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