1. Blood is the fluid of growth, transporting nourishment through the body. • Blood is the fluid of health, transporting disease-fighting substances. Delivering oxygen, nutrients, hormones... Red blood cells White blood cells Looking out for signs of disease and producing antibodies and attacking

2. Financial Sector and Resource Allocation Investment Proposals Potential Investors Fund Providers • Financial Sector: Resource Allocator • Pt Resource Deprivation (RBC) (WBC) Investment Failure Bad loan Inefficient Allocation Land Labor Equipment Case approved Production Resource Acquisition/Allocation Efficient Allocation

3. Functions of Financial Sector (1) mobilizing savings (4) easing transaction (2) allocating resources (5) monitoring corporate governance (3) managing risk Financial Sector Savings 1 Insurance Fund Short Capital Market (Direct Finance) 2 3 Long Investment 4 Banking (Indirect Finance) Consumption 5 4 4 Production

4. 血液是輸送養份的流體 • 血液是輸送消滅病菌的流體 Delivering oxygen, nutrients, hormones... Red blood cells White blood cells Looking out for signs of disease and producing antibodies and attacking

5. 金融分配資源之功能 Investment Proposals Potential Investors 資金提功者 金融部門: 分配資金 Resource Deprivation (RBC) (WBC) 投資失敗 壞帳 Inefficient Allocation 土地 勞工 設備 Case approved 生產順利 Resource Acquisition/Allocation Efficient Allocation

6. Functions of Financial Sector (1) mobilizing savings (4) easing transaction (2) allocating resources (5) monitoring corporate governance (3) managing risk Financial Sector Savings 1 Insurance Fund Short Capital Market (Direct Finance) 2 3 Long Investment 4 Banking (Indirect Finance) Consumption 5 4 4 Production