Chapter 26

This chapter focuses on saving, investing, and the financial system as a whole. The financial system is made up of banks, stock markets, mutual funds and all of these markets are intended to help people save money. When people do not want to save their money they can put it into investments but if they do this they have to look for other sources to fund these investments.There are various sources/institutions for loaning money for people as an investment (this could happen when someone is trying to open a business but does not have enough money) examples of places that lend money: banks or even a friend/business partner (these sources would invest their money in someone in the hopes that this person's business will be successful and they will get their money back).When paying back a loan there is an interest rate, and this interest rate is determined by the supply and demand of lovable funds