In four to six sentences, explain the savings-borrowing-investing cycle.

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Social Studies

Ruffe

23 November, 06:14

In four to six sentences, explain the savings-borrowing-investing cycle.

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Dominique Dorsey · Answer 1

The saving-borrowing-investing cycle begins when a consumer borrows funds or resources to establish seed capital for their business projects.

Then he invests this capital in his business to gain profit from it. After that, he repays the money or resources he initially borrowed, and save the profits he earned from his business. Later, the saved money is used for capital investment or for borrowing more funds and resources.