what is the role of the bank in circular flow?

0 ⤊

what is the role of the bank in circular flow?

2006-11-06 02:46:41 · 2 answers · asked by cheese 2 in Social Science ➔ Economics

2 answers

They are the "pipelines" in the flow - they make the flow easier and faster. Banks bring together people who want to borrow money for investment and people who have savings. Banks hold your money between when you are paid (for work, rent, etc) and when you spend it.

2006-11-08 19:32:16 · answer #1 · answered by MBK 7 · 0⤊ 1⤋

Banks are where the fed goverment takes old money out and puts the new back in its place.

2006-11-10 10:41:16 · answer #2 · answered by Brian 5 · 0⤊ 0⤋