Finace, saving and investment

Finace, saving and investment

1. Finance Instituitions

   • Banks
   • Trust and loan companies
   • Credit unions and caisses popularies
   • Pension funds
   • Insurance companies
   • Insolvency & Illiquidity
     • Positive net worth
       • The institution is solvent, business is maintained
     • Negative net worth
       • The institution is solvent, business in debt and run out

2. Finance Capital

   • Gross investment
   • Net investment
   • Wealth and saving

3. Financial Capital Market

   • Loan markets
   • Bond markets
   • Stock markets

4. The Loanable Funds Market

   • The supply for loanable funds
     • The real interest rate
     • Disposable income
     • Expected future income
     • Default risk
   • The demand for loanable funds
     • The real interest rate
     • Expected profit
   • The real interest rate
     • Real interest rate
     • Nominal interest rate