4.2.2 Financial markets Meaning Financial institutions through which savers can directly provide funds to borrowers Borrowers -demanders of finance households, firms and governments that choose to spend more than they earn in income or collect in revenue at some point in time Savers -suppliers of finance households, firms and government that choose to spend less than they earn in income or raise in revenue at some point in time Saving part of income or revenue that is not spent at some point in time or the postpone spending until some time in the future4.2.2 Financial markets ➢ Meaning ⚫ Financial institutions through which savers can directly provide funds to borrowers. ➢ Borrowers – demanders of finance ⚫ households, firms and governments that choose to spend more than they earn in income or collect in revenue at some point in time. ➢ Savers – suppliers of finance ⚫ households, firms and government that choose to spend less than they earn in income or raise in revenue at some point in time. ➢ Saving ⚫ part of income or revenue that is not spent at some point in time, or the postpone spending until some time in the future