Direct Finance Financial Instrument Funds- Financial Financial Markets Instrument Funds LendenSaven (Primarily Hounehokd) BonowerySpenden (Mostly Govemments and Firma) Funds - Financial Instrument Financial Institutions Funds Financial Instrument

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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From the figure below, briefly explain the basic flow of funds through the financial system. (Start with the Lenders/Savers).

Direct Finance
Financial
Instrument
Financial
Markets
Financial
Instrument
Funds
-Funds
Borrowers/Spenders
Lenders/Savers
(Primarily Househokds)
(Mostly Governments
and Firms)
Funds
Financial
Instrument
Funds -
Financial
Institutions
Financial
Instrument
Indirect Finance
Transcribed Image Text:Direct Finance Financial Instrument Financial Markets Financial Instrument Funds -Funds Borrowers/Spenders Lenders/Savers (Primarily Househokds) (Mostly Governments and Firms) Funds Financial Instrument Funds - Financial Institutions Financial Instrument Indirect Finance
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