Banks a company which accepts deposits and issues new loans, Ask an Expert

Economics

Banks: A company which accepts deposits and issues new loans. It makes profit by charging more interest for loans than it pays on deposits, and through several service charges. By issuing new loans (or credit) banks create new money that is necessary to promoting economic growth and job creation.

View complete question

Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M9579120

Have any Question?Write your Review or question?

Related Questions in Microeconomics

Question when inflation and interest rates rise at business

Question: When inflation and interest rates rise at business cycle peaks, the dollar is likely to decline because foreign investors withdraw assets that are likely to depreciate in real terms because of higher inflation. ...

Question a countrys economy is described in table 2 using

Question: A country's economy is described in Table 2. Using information in Table 2, answer questions (2.1), (2.2), (2.3) and (2.4) Phillips curve p -p-1=-0.55x( U-Un) Natural rate of unemployment uN = 5% Previous year's ...

Question the market supply function is p 10 q and the

Question: The market supply function is P = 10 + Q and the market demand function is P = 70 - 2Q. What is the size in consumer surplus associated with a minimum floor price of $40? The response must be typed, single spac ...

Question net present value 3 points totalthe city of

Question: Net Present Value (3 points total) The city of Corvallis is deciding whether or not to undertake a project to improve the quality ofthe city's drinking water. The project would require an immediate payment of $ ...

What factors are used to measure productivity has the

What factors are used to measure productivity? Has the annual average productivity in the U.S. went up or down over the last 30 years? In your opinion what caused this to happen?

Question since the pound sterling devalued in 1993 it has

Question: Since the pound sterling devalued in 1993, it has changed very little relative to the Dmark and its successor, the e. At the same time, the inflation rate in the UK, which used to be about 5% per year higher th ...

Question consider an economy with two individuals and two

Question: Consider an economy with two individuals and two goods. Preferences are Leontief and in particular, u1(x, y) = min{2x, y} and u2(x, y) = min{x, 2y} Initial endowments are ?1 = (4, 0) and ?2 = (0, 4) (a) Derive ...

Question the new shoes simulation offers three regions in

Question: The New Shoes simulation offers three regions in which your athletic shoe company operates. The foreign region may be an option for your organization to develop. Which strategies would be best suited to meet th ...

Question some critics of discretionary monetary policies

Question: Some critics of discretionary monetary policies used by central banks suggest that there are lag problems in the timing of monetary policy, and there are problems with time inconsistencies, credibility and comm ...

Question please answer both part100-120 worda discuss the

Question: Please answer both part.(100-120 word): a) Discuss the impact of floating exchange rates on the profitability of foreign operations by US companies. b) President Trump has threatened to impose 25+% new tariffs ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Microeconomics Expert