1. What crucial role do banks and financial institutions play?

The crucial role the banks and financial institutions play is making sure the money saved
by the people of the country will not sleep in one place. Hence, they were in charge of making
the money circulate to the economy by means of investments, borrowings and
loans. Furthermore, they were serves as an intermediary between the depositors and
borrowers. It helps the borrowers to finds a funds for them and depositors is assured that their
money is secured and earning at the same time.

2. Why is understanding how financial institutions are managed important to your life?

The understanding on how the financial institution are managed is important to my life
is that it helps me to learned on how will I make my money growth in the future if I will be
saving it in bank or invest it. In addition, If I don’t have a money to save on where I want to put a
business is can borrow money with a reasonable interest, or if there unforeseen event in my life
there were a lot of kinds of insurances that will aids me when the time I needed it the most.