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Essay text:
Households
Households are fund provider to other finance player, no matter under which financing way (direct or indirect finance) the fund is provided. From the disposable income that they get, households will allocate some for consumption. The portion that has not been consumed called saving. Then the households can choose their own way of allocating those saving either for bank deposits (D+) or securities (Bh), or maybe both of them in their preferred proportion that can maximize its benefit.
B. Banks
In this model, the role of the bank is as fund provider for firms. Banks extend loans to firms (L+) to meet the firms demand in funds...
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