Question: Explain how funds flow from lenders to borrowers by using the diagram below for 20 marks? DIRECT FINANCE Financial markets FUNDS FUNDS Money market .

Explain how funds flow from lenders to borrowers by using the diagram below for 20 marks?

Explain how funds flow from lenders to borrowers by using the diagram

DIRECT FINANCE Financial markets FUNDS FUNDS Money market . Capital market Lenders / net savers Borrowers / net spenders FUNDS Households Firms . Government Non-residents Households Firms . Government Non-residents Financial intermediaries FUNDS FUNDS Credit institutions Other monetary financial institutions Other INDIRECT FINANCE

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