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Define the flow of funds model and explain each component

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Define the flow of funds model provided in this unit, explain each component and how funds flow from savers to producers.

APA FORMAT 275 WORDS

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The response addresses the queries posted in 392 words with references.

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The response addresses the queries posted in 392 words with references.

//Money flows from one sector to another in an economy, but it is necessary to understand the way in which the money flows and the importance of having a definite network for the flow of funds. The correct flow of funds will be beneficial in serving the economy and fulfilling its various needs. In this context, the section below will highlight the circular flow of funds from savers to producers.//

Introduction

The circular flow of funds represents the pattern, in which consumers (households), businesses (producers) and markets act together, and the network that they share (Gamber & Colander, 2006). ...

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Ashish Sharma, MBA (IP)
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  • MBA (IP), International Center for Internationa Business
  • BBA, University of Rajasthan
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