Answered

Westonci.ca connects you with experts who provide insightful answers to your questions. Join us today and start learning! Discover precise answers to your questions from a wide range of experts on our user-friendly Q&A platform. Our platform provides a seamless experience for finding reliable answers from a network of experienced professionals.

Answer each of the following questions in complete sentences.
1. Banks are businesses Like other businesses, they seek profit How do they eam prot?
2 Why might an individual want to use a bank? Give an example of why
would use a bank
3. Why might a business want to use a bank? Give an example of why a business owner would use a bank
4. What is the Federal Reserve?
5 The money supply is the total amount of money available in the economy. How do changes in the money supply affect people and businesses?
6. How does banking affect the money supply?
7. What would happen if banking didn't exist?

Sagot :

Banks stand very important in the financial system because they create loans which then make money for businesses and individuals to spend.

What is the purpose of banks?

Banks stand very important in the financial system because they create loans which then make money for businesses and individuals to spend. Banks can create their profit when they acquire interest from the loans they make. Their activities exist monitored by the Federal Reserve which stands for the central banking system of the United States.

  • The way that banks earn profit exists via banking fees and interest payments on the loans they convey out.

  • Individuals would utilize a bank to save their money.

  • Businesses can use banks to obtain loans to expand their business.

  • The Federal Reserve stands as the central bank of the United States.

  • When there exists more money in supply, businesses and individuals will have more money to spend on goods and services. The reverse exists true.

  • Banking concerns money supply by increasing the amount of money in circulation when they make loans.

  • Without banks, we wouldn't include loans to buy a house or a car. We wouldn't control paper money to buy the things we require.

To learn more about banks refer to:

https://brainly.com/question/16160901

#SPJ9

Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. Thank you for choosing our platform. We're dedicated to providing the best answers for all your questions. Visit us again. Thank you for using Westonci.ca. Come back for more in-depth answers to all your queries.