INCOME 1000 1500 2000 2500 3000 3500 4000 CONSUMPTION a. 4000, b. 3500. c. 3000. d. 2500. 800 1200 1600 2000 2400 2800 3200 INVESTMENT 500 500 500 500 500 500 500 28. Suppose that there is a simple economy with no government and foreign sectors. It's total output and spending is shown in the above table. The equilibrium level of output is.

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Functions of Financial Institutions

Financial institutions are businesses that are formed to deal with financial and monetary transactions. These organizations primarily accept deposits, advance loans, make investments, and provide foreign exchange services. Financial institutions include, but are not limited to, banks, insurance companies, trust companies, brokerage firms, and investment bankers. Because financial institutions play such an important role in the economy in terms of monetary transactions, regulating their activities has become a requirement for governmental authorities. As a result, the government creates a multitude of laws and regulations to oversee the activities of financial institutions.