Answer to Question #285567 in Macroeconomics for schezny

Question

Explain the reasoning for existent of financial institutions.

Answer 1

Solution:

A financial institution exists to provide individuals and businesses with a wide range of deposit, lending, and investment products.

Financial institutions, such as banks, offer consumers places to store their existing funds as well as loan and credit options for future purchases. They also offer a diverse range of services and banking products to both consumers and businesses. They also regulate money in the economy, which helps to boost economic growth.