Read the following premise carefully and answer the questions specifically and in detail. You must answer the request with the correct information, showing that you understand and can properly apply the concepts. Try to address all the elements of each question and always express the answers in your own words. "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. Explain in detail the role of the financial market and its influence for capital injection. 2. Analyze the responsibility of the financial system in the demand for investment versus the supply of savings

Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter8: Savings,investment And The Financial System
Section: Chapter Questions
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Read the following premise carefully and answer the questions specifically and in detail. You must answer the request with the correct information, showing that you understand and can properly apply the concepts. Try to address all the elements of each question and always express the answers in your own words.

"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. Explain in detail the role of the financial market and its influence for capital injection.
2. Analyze the responsibility of the financial system in the demand for investment versus the supply of savings.

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