1. Economic Flow/Financial Institutions
SOL 12 B&C

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

3. 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

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

5. 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