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stepan [7]
3 years ago
7

How do banks create money?

Business
1 answer:
Dafna11 [192]3 years ago
5 0

Answer:

Commercial banks, required reserve, loans, deposits, create.

Explanation:

The main function of commercial banks is to accept deposits and then to lend the same money (minus required reserves) back out. Banks make a profit by charging a higher interest rate on loans than the interest rate they pay on deposits. Through the loan process, banks are actually able to create money.

The major function of commercial banks is

1. Accepting deposits from people and business organzations.

2. Giving loans to Customers to be paid at a specific period of time at an agreed interest rate.

Required reserve is the minimum amount of money which in required for a commercial Bank to hold/save out of every deposit. If the required reserve is 10% of every deposit, a customer customer deposited $100. The required will be $10 which the bank will hold. The remaining $90 is the balance which banks can loan out to Customers.

Commercial Banks make profit by charging a higher interest rate on loan and lower interest rate on deposits. For example: 7.5% interest rate on loan and 2.5% interest rate on deposits. The 5% difference is the bank Profit.

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What counts as a disability under title ii of the ada
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Answer:

II-2.4000 Substantial limitation of a major life activity.

Explanation:

To constitute a "disability," a condition must substantially limit a major life activity. Major life activities include such activities as caring for one's self, performing manual tasks, walking, seeing, hearing, speaking, breathing, learning, and working.

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2 years ago
______ leaders focus on providing increased service to others—meeting the goals of both followers and the organization—rather th
mixer [17]
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Please vote my answer branliest! Thanks.
7 0
3 years ago
Which of these is NOT one of the five ethical principles the GAO's Yellow Book stresses?
Anni [7]

Answer:

The correct answer is d. The proper safeguarding of client information.

Explanation:

According to chapter 3 of the GAO Yellow Book, the following are the ethical principles:

  1. The public Interest
  2. Integrity
  3. Objectivity
  4. The proper use of government information, resources, and position.
  5. Professional behavior.

Proper protection of customer information is not an ethical principle in this book, but it should be a factor to consider in the information manipulation process.

7 0
3 years ago
If your answer is zero, enter "O". a. Under a 2017 divorce agreement, Joan is required to pay her ex-husband, Bill, $2,340 a mon
scoundrel [369]

Answer:

$2,400 in 2019 are deductible as alimony.

Step-by-step explanation:

Hillary get divorced in the year = 2016

She has to pay her ex-spouse $200 per month until her son reaches 18 years of age in 7 years.

His son will reach of the age of 18 = 2016 + 7 = 2023

She has to pay $200 till 2023 and $120 thereafter.

Her payments are deductible as alimony in 2019 would be = $200 × 12

                                                                                                 = $2,400

$2,400 in 2019 are deductible as alimony.

4 0
2 years ago
A marketing campaign makes unsubstantiated claims for the product it is promoting. Under ________, such advertisements would be
vredina [299]

Answer:

Section 5 of the FTC Act

Explanation:

Section 5 of the FTC Act prohibited companies to make "deceptive actions"  during all activities in a commerce.

In marketing, this section of the Act prevented companies to falsely promoting their products. They're required to truthfully listed all ingredients of the product and banned from making claim that are misleading to the consumers.

For example, you can't claim a drug that you sell can cure cancer without proper authorized researches to back it up.

3 0
3 years ago
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