The money that households save is borrowed by firms in the financial market in order to buy new equipment and plants.

Question

Quizplus · Accepted Answer

This statement is true. Firms may borrow the money saved by households in order to invest in new equipment, expand production, or engage in other activities that could help them grow their business. This borrowing takes place in various financial markets, such as banks, stock markets, or bond markets. Overall, this borrowing and lending process helps to stimulate economic growth and development.

The Money That Households Save Is Borrowed by Firms in the Financial