Relationship between investment and savings

Financial institutions such as banks, mortgage companies, and finance companies serve as intermediaries between those with a surplus versus those with a deficit creating a capital injection market.

1. It explains in detail the role of the financial market and its influence for capital injection.
2. It analyzes the responsibility of the financial system in the demand for investment versus the supply of savings.
3. Using the concepts of real interest rate and expected rate of return, test the relationship between saving and capital investment.