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vladimir1956 [14]
3 years ago
9

How does inflation help explain why banks charge interest on loans

Social Studies
1 answer:
Artyom0805 [142]3 years ago
6 0

Answer:

Explanation:

In general, banks charge interest because that's how they make their money, at least that's what banks used to do. Interest is what they manufacture for their stockholders.  Now they do all sorts of things they shouldn't.

If you mean why do they raise interest rates when there is inflation, that is really an excellent question. The hope is that they are making money more expensive to borrow. It affects the money cycle. It makes it harder for people to borrow money so they can spend it on things that they need like housing or cars.

If there is large inflation, then high interest rates protect the bands when money will buy less than before the large inflation. It's an attempt to stabilize money.

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Lucy has regular sleep and feeding schedules, approaches new situations with enthusiasm and adapts to them easily, and is genera
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Easy child

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In psychology, the term temperament refers to an individual’s behavioral style and their way of responding.

This term is usually used to refer to the way infants respond and psychologists usually think there are three different kind of temperaments:

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3 years ago
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The historical ways that  the United States act in response to conflicts around the world is through litigation, arbitration, mediation, and conciliation.

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Conflict is known to be a kind of disagreement that exist between two or more people.

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2 years ago
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There is no doubt in my mind that today, 30 years later, we still have Theory X managers. According with McGregor Theory X, managers tend to have a negative, pessimistic view of employees and display more coercive, autocratic leadership styles using external means of controls, such as threats and punishment.

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Douglas McGregor developed the theories known as Theory X and Theory Y in 1960. These theories propose two aspects of human behavior at work, or, to put it another way, two opposing perspectives on people (employees): one is negative and is known as Theory X, and the other is positive and is known as Theory Y.

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