What Will Happen To An Economy In The Absense Of The Financial Institution?Explain The Possible Effect It Will Have On Circular Flow

what will happen to an economy in the absense of the financial institution?Explain the possible effect it will have on circular flow

Probably the economy will paralyzed because financial institution is very important in every business, Financial Institution offers loan to those individual or business organizations who want to engage in business but without adequate capital  to start. Financial institution is also a life blood of the economy because they are the one who are strives more to distribute money to all business sectors for the economic growth. There is an adverse effect of the non existence of financial institution there might be an economic crawling. poverty will rise, no jobs available etc.


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