Channelling of funds from savers to spenders important, Finance Basics

Assignment Help:

How is the channelling of funds from savers to spenders very important?

The channelling of funds by savers to spenders is very significant for two purposes:

• One, lender-savers (along with excess of accessible funds) does not often have profitable investment opportunities, whereas borrower-spenders have investment opportunities but lack of funds.

• Second, still for purposes other than investment opportunities into businesses, borrower-spenders may wish for invest into excess of their current income or to adjust the composition of their wealth (understanding of the preferences for recent versus future consumption).


Related Discussions:- Channelling of funds from savers to spenders important

Finance, This case has been framed in order to test the skills in evaluatin...

This case has been framed in order to test the skills in evaluating a credit request and reaching a correct decision

Agency theory - finance, Agency Theory The agency problem between mana...

Agency Theory The agency problem between managers and shareholders can be resolved via paying high dividends. If retention is low, managers are necessary to increase additiona

Example of accounting rate of return method, Example of Accounting Rate of ...

Example of Accounting Rate of Return Method                                    Shs. Project X cost              500,000 Scrap value                 100,000 Stream of

Aafafa, ksklklsdfmklsnakakngjkalkgblakbgklabgklagkbaskgbljas a kalks las l...

ksklklsdfmklsnakakngjkalkgblakbgklabgklagkbaskgbljas a kalks las lgaskgbak a lv aslglaksglas la sla

Determine the functions of new issue market, Determine the Functions of New...

Determine the Functions of New Issue Market The key function of new issue market is to facilitate transfer resources from savers to the users. Savers are individuals, insura

Lease finance, Lease Finance Leasing is a contract between one party c...

Lease Finance Leasing is a contract between one party called lessor as owner of asset and other called lessee whereas the lessee is provided the right to utilize the asset as

Monetary control operations, 'The most significant function of any Central ...

'The most significant function of any Central Bank is to undertake monetary control operations'.   Discuss with specific reference to the Bank of England, highlighting its current

Business finance., what are the sources of business finance?

what are the sources of business finance?

Performance review, I am facing some problems in my assignment of Performan...

I am facing some problems in my assignment of Performance Review in finance. Can anybody suggest me the proper explanation for it?

Compute appropriate net present value, Imagine Joy is the project coordinat...

Imagine Joy is the project coordinator in a company where four projects are running concurrently. He's employed you as the senior business analyst to perform some financial calcula

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd