Institutions serving as links between surplus and deficit un…

JAMB Economics 2023 190 views
Source: JAMB · 2023

Institutions serving as links between surplus and deficit units can be identified as

  1. financial intermediates ✓
  2. tax officers
  3. acceptance houses
  4. pension offices
Explanation

Some people have spare money (surplus units). Others need to borrow (deficit units). Financial intermediaries, such as banks, link the two.

They collect savings and lend them out.

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