TAILIEUCHUNG - Lecture Money and capital markets: Chapter 21 - Peter Rose, Milton Marquis

Chapter 21 - Consumer lending and borrowing. After completing this unit, you should be able to see the vital role played by consumers in supplying loanable funds through savings to the money and capital markets; to learn about the important role consumers play as major borrowers of funds and the laws that protect their rights; to explore the characteristics of consumer lending institutions. | Chapter 21 Consumer Lending and Borrowing Learning Objectives To see the vital role played by consumers in supplying loanable funds through savings to the money and capital markets. To learn about the important role consumers play as major borrowers of funds and the laws that protect their rights. To explore the characteristics of consumer lending institutions. Introduction Many financial analysts have referred to the period since World War II as the age of consumer finance. Individuals and families have become the principal source of loanable funds flowing into the financial markets today. They also are one of the largest borrowing groups in the entire financial system. Consumers as Lenders of Funds Consumers as a group are among the most important lenders of funds in the economy. Loanable funds are supplied by consumers – individuals and families (households) – when they purchase financial assets from other units in the economy. Financial Assets Purchased by Consumers 21 - .