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

Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter13: Investing In Mutual Funds, Etfs, And Real Estate
Section: Chapter Questions
Problem 3LO
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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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