Scribd Logo
Upload

Welcome to Scribd!

  • 143 views

    Indirect Finance: Funds Financial Intermediaries

    Uploaded by

    Asad Ali Ali
    This document outlines the flow of funds from lender-savers to borrower-spenders through either direct finance via financial markets or indirect finance through financial intermediaries like banks. Lender-savers include households, business firms, government, and foreigners, while borrower-spenders are comprised of business firms, government, households, and foreigners seeking funds to finance spending.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    Indirect Finance: Funds Financial Intermediaries

    Uploaded by

    Asad Ali Ali
    143 views1 page
    This document outlines the flow of funds from lender-savers to borrower-spenders through either direct finance via financial markets or indirect finance through financial intermediaries like banks. Lender-savers include households, business firms, government, and foreigners, while borrower-spenders are comprised of business firms, government, households, and foreigners seeking funds to finance spending.

    Original Description:

    Financial Intermediary

    Original Title

    Diagram

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This document outlines the flow of funds from lender-savers to borrower-spenders through either direct finance via financial markets or indirect finance through financial intermediaries like banks. Lender-savers include households, business firms, government, and foreigners, while borrower-spenders are comprised of business firms, government, households, and foreigners seeking funds to finance spending.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    143 views1 page

    Indirect Finance: Funds Financial Intermediaries

    Uploaded by

    Asad Ali Ali
    This document outlines the flow of funds from lender-savers to borrower-spenders through either direct finance via financial markets or indirect finance through financial intermediaries like banks. Lender-savers include households, business firms, government, and foreigners, while borrower-spenders are comprised of business firms, government, households, and foreigners seeking funds to finance spending.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    Indirect Finance

    Funds
    Financial
    Intermediaries
    Funds
    Funds

    Lender-Savers: Borrower Spenders:


     Households. i. Business Firms.
     Business Firms. Financial ii. Government.
     Government. Market iii. Households
     Foreigners . iv. Foreigners.
    Direct Finance

    Those who have saved and lending funds, the Lender Savers are at the
    left side & those who must borrow funds to finance their spending, the
    Borrower-Spenders are at the right. The arrows show that Funds flow
    from lender savers to Borrower – spenders via two routes i.e.; through
    financial markets (Direct Finance) and through Financial intermediaries
    i.e. Banks etc. (Indirect Finance)

    In direct finance borrowers borrow funds directly from lenders in


    financial markets by selling them securities or bonds which are claim on
    borrowers’ future income or assets.

    You might also like