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The financial sector as a bridge

The financial sector as a bridge

Flow diagram showing savers depositing money into banks and building societies, borrowers receiving loans, the Bank of England setting the base rate and supporting financial stability, and business investment leading to higher output and jobs

The financial sector is the part of the economy that manages saving, borrowing, lending, payments and financial stability. Its basic job is to move money from people and firms who can wait to spend to people and firms who need money now.

The role and importance of the financial sector for the economy Lesson

  1. GCSE
  2. /Economics
  3. /The role and importance of the financial sector for the economy