What does it mean to say that individuals as a group are net suppliers of funds for financial institutions? What do you think the consequences might be in financial markets if individuals more of their incomes and thereby reduced the supply of funds available to financial institutions? What does it mean to say that individuals as a group are net suppliers of funds for tinancial institutions? (Select the best answer below) A. tndviduals, as a whole, spend less than they make The excess is invested, making it available for businesses and goverments O B. Individuals, as a whole, spend more than they make. The excess is provided for by financial instftutions O C. Individuals, as a whole, spend more than they make The excess is provided for by businesses. O D. Indviduats, as a whole spend less than they make. The amount that hey spend is made available to businesses through Inancial netutors What do you think the consequences mignt be in financual markets if indviduats consumed more of their incomes and thereby reduced the suply of funds avalable to financial institutions? (Select the best answers from the drop-down menus If individuals consume more i.e, required return of investors to buy bonds) Over time, employment salaries, and gross domestic product would oolirs wis be avatlabie tor nestent The the amount of money available for new projects and drive the required return vailabd ae Solution Individuals as a group are net suppliers of funds for Financial Institutions. Generally individuals spend according to their requirement and invest there surplus Into The Financial Institutions. That is the difference between income and spending is saving. These savings directly goes to the financial institutions which they utilize in financing the businesses. Individuals as a whole, spend less than they make. The excess is invested, making it available for businesses and governments. Option A. If individuals consume more less dollar will be available for investment. This would reduce the amount of money availablefor new projects and drive up/high the required rate of return. Over time, employment, salaries and GDP would decline..

1. What does it mean to say that individuals as a group are net suppliers of funds for financial
institutions? What do you think the consequences might be in financial markets if individuals
more of their incomes and thereby reduced the supply of funds available to financial institutions?
What does it mean to say that individuals as a group are net suppliers of funds for tinancial
institutions? (Select the best answer below) A. tndviduals, as a whole, spend less than they make
The excess is invested, making it available for businesses and goverments O B. Individuals, as a
whole, spend more than they make. The excess is provided for by financial instftutions O C.
Individuals, as a whole, spend more than they make The excess is provided for by businesses. O
D. Indviduats, as a whole spend less than they make. The amount that hey spend is made
available to businesses through Inancial netutors What do you think the consequences mignt be
in financual markets if indviduats consumed more of their incomes and thereby reduced the
suply of funds avalable to financial institutions? (Select the best answers from the drop-down
menus If individuals consume more i.e, required return of investors to buy bonds) Over time,
employment salaries, and gross domestic product would oolirs wis be avatlabie tor nestent The
the amount of money available for new projects and drive the required return vailabd ae
Solution
Individuals as a group are net suppliers of funds for Financial Institutions.
Generally individuals spend according to their requirement and invest there surplus Into The
Financial Institutions. That is the difference between income and spending is saving. These
savings directly goes to the financial institutions which they utilize in financing the businesses.
Individuals as a whole, spend less than they make. The excess is invested, making it available for
businesses and governments. Option A.
If individuals consume more less dollar will be available for investment. This would reduce the
amount of money availablefor new projects and drive up/high the required rate of return. Over
time, employment, salaries and GDP would decline.