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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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2 years ago
A female child is born into a homeless, single-parent family. She is very talented and as an adult becomes a wealthy, world-accl
klasskru [66]

Answer: The class system

Explanation:

Stratification gives the ranks of social status of each families in the society.

The class system is global method that put group of individuals who have a definite status within society which describes how they relate to other groups

These status are not fixed they can change anytime because they are social classes that depends on the individuals status at that particular moment .

In the above text this female child was born in the poor family and had ranked in the lower rank but has however moved up into the higher rank as she gets richer and richer.

8 0
3 years ago
Which economic system do most countries operate under today?
MAVERICK [17]

Most nations operate in the capitalist system of production and consumption.

Since the end of the feudal system, the world underwent transformations that culminated in economic systems based on barter and mercantilism, which in turn allowed for the existence of industrial revolutions and which were the basis for the capitalist system of production as it is today.

In last century, Capitalism and communism competed for world hegemony until the end of the Cold War, when the bipolarized world gave way to what today times capitalist hegemony in most countries with a few countries in communist systems.

5 0
3 years ago
Read 2 more answers
What is the largest body of water in the state of Mississippi?
Mrac [35]
The largest body of water in the state of Mississippi is Grenada Lake
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3 years ago
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A first-grade teacher designs the following activity. Divide students into pairs. Have students sit back-to-back. Give one stude
Juli2301 [7.4K]

Answer:

This activity is likely to contribute to students' literacy development primarily by imaginative method of the student. This is because, as the game progresses, the student would be left with no other option than to deploy his or her imagination in order to resolve the game.

<em>As the students plays the game, the other person meant to name the object being described would have know other option than to think of what the object could likely be thereby contributing to his or her literacy development.</em>

Explanation:

3 0
2 years ago
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