The main function of financial institutions is to facilitate the flow of money from sectors with surpluses to those with deficits.

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Financial institutions, such as banks and investment firms, play an important role in the economy by helping to channel funds from savers to borrowers. They gather deposits and other funds from individuals and organizations with surplus funds, and then lend or invest these funds to individuals and organizations that need funds to carry out their activities. This helps to ensure that funds are directed to their most productive uses and can fuel economic growth.

The Main Function of Financial Institutions Is to Facilitate the Flow