Explain how you believe economic activity would be affected if there were no financial institutions. by finm3404

Explain how you believe economic activity would be affected if there were no financial institutions. by finm3404 https://padlet.com/jinlujinluaus/2 Tut1 en-us 2018-02-27 11:14:23 UTC 2026-02-02 06:46:49 UTC hello@padlet.com Reduce in economic activity https://padlet.com/jinlujinluaus/2/wish/236198049 2018-02-27 23:09:11 UTC https://padlet.com/jinlujinluaus/2/wish/236198049 No intermediation https://padlet.com/jinlujinluaus/2/wish/236198058 Banks move money from SSUs to DSUs and increase market liquidity and reduce transaction costs and information asymmetry in the process. There would be a lot of dodgy loans happening

]]> 2018-02-27 23:09:13 UTC https://padlet.com/jinlujinluaus/2/wish/236198058 Decreased productivity https://padlet.com/jinlujinluaus/2/wish/236198144 Much of the liquidity required in the economy is provided by FIs.]]> 2018-02-27 23:09:35 UTC https://padlet.com/jinlujinluaus/2/wish/236198144 https://padlet.com/jinlujinluaus/2/wish/236198158 The rich get richer, the poor get poorer. ]]> 2018-02-27 23:09:40 UTC https://padlet.com/jinlujinluaus/2/wish/236198158 https://padlet.com/jinlujinluaus/2/wish/236198268 There would be less economic growth as businesses are no longer able to obtain large loans for expansion and investors no longer have the safety provided by the FI's]]> 2018-02-27 23:10:09 UTC https://padlet.com/jinlujinluaus/2/wish/236198268 https://padlet.com/jinlujinluaus/2/wish/236198393 Very slow economic growth without lending borrowing or risk intermediation ]]> 2018-02-27 23:10:38 UTC https://padlet.com/jinlujinluaus/2/wish/236198393