Question: I need help with this task. Relationship between investment and savings Financial institutions such as banks, mortgage companies, and finance companies serve as intermediaries between
I need help with this task.
Relationship between investment and savings
Financial institutions such as banks, mortgage companies, and finance companies serve as intermediaries between those with a surplus versus those with a deficit creating a market for capital injection.
1. I must explain in detail the function of the financial market and its influence on the injection of capital.
2. I must analyze the responsibility of the financial system in the demand for investment versus the supply of savings.
3. Using the concepts of real interest rate and expected rate of return, I must test the relationship between saving and capital investment.
4. Using the macroeconomic theory presented in the module's content, I must explain the relationship of the financial market with the economic growth of a country.
5. I must explain the dynamics that are expected to occur between the different development policies in the injection of capital as instruments to promote the growth, sustainability, and economic stability of a country.
Could you please include references?
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
