Answer:
see below
Explanation:
Saving involves putting aside a portion of one's income for future consumption. Financial institutions provide savings accounts where the public can save money. When many people save, the banks find themselves holding a lot of money in their custody. Since the banks have a need to make profits, they loan out these savings to individuals and businesses for expansion and consumption. When businesses borrow to expand, they are investing; when individuals borrow to start a business, it's an investment.
Savings in financial institutions provide funds for businesses and households to borrow and invest. The proceeds of investments are deposited in banks, loaned out again, and the cycle continues.
