Chapter 11 Key Terms and Main Ideas Jason Tang P1

Chapter 11 Key Terms and Main Ideas Jason Tang P1 - Chapter...

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Chapter 11 Key Terms and Main Ideas Jason Tang P1 Section 1 1. Investment promotes economic growth and contributes to a nation’s wealth. When people deposit money in a savings account in a bank, for example, the bank may then lend the funds to businesses. The businesses, in turn, may invest that money in new plants and equipment to increase their production. As these businesses use their investments to expand and grow, they create new and better products and provide new jobs. 2. Savers lend out their savings in return for financial assets. Savers make deposits to financial institutions that make loans to investors. Borrowers invest the money they borrow to build roads, factories, and homes. Borrowers may also use these funds to develop new products, create new markets, or provide new services. Intermediaries share risks, provide information, and provide liquidity to investors. 3. Financial intermediaries share risks, provide information, and provide liquidity to investors. 4.
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Chapter 11 Key Terms and Main Ideas Jason Tang P1 - Chapter...

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