Economic Flow/Financial Institutions

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Presentation transcript:

Economic Flow/Financial Institutions SOL 12 B&C

Economic Flow Individuals and businesses provide money for banks to give out as loans

Flow Individuals/households: Businesses: 1. sell resources used in production 2. use income to buy products Businesses: 1. buy resources 2. make products to sell 3. use profits to buy more resources for more products

Flow Government: 1. collect taxes 2. use money to provide public goods and services

Financial institutions 1. Banks 2. Savings and loans 3. Credit unions 3 types of financial institutions All 3 receive deposits and make loans Encourage saving by offering interests on deposits Money made by depositing money in a bank

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