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MrMuchimi
3 years ago
15

Commercial banks create money throughmaking loans. facilitating borrowing from the Federal Reserve to the public. printing treas

ury notes. reducing risk in the economy.
Business
1 answer:
Butoxors [25]3 years ago
7 0

Answer:

making loans

Explanation:

Commercial bank is the bank where the most of the people do their banking. Here the money is to be provided and the interest is also earned from such loans like mortgage, auto loans, business loans, personal loans, etc

Therefore as per the given situation, the commercial bank would earned by the money by providing the loans or making the loans

Hence, the first option is correct

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</span><span>This document includes several aspects: human rights, trade and investment protection in international diplomacy.</span>
8 0
3 years ago
Just as depository institutions differ from non-depository Institutions, there are also differences between the structure and ac
bezimeni [28]

Answer: A. True

B. True

C. False

Explanation:

A. Both Mutual Savings Banks and Credit Unions are owned by the their depositors. Credit Unions are owned and operated by members for the purpose of creating banking services for themselves at a cheaper cost.

Mutual Savings Banks are also owned by members who felt that traditional banks did not favour them.

B. Demand Deposit accounts exist in both commercial banks and Credit Unions but with different names. In Commercial banks they are known as Checking accounts for the most part but Credit Unions call them Share Draft Accounts and members of the Union can use these accounts by writing drafts like Commercial banks allow cheques.

C. While Credit Unions were formed usually for people in the same organisations or people with a common bond, Mutual Savings Banks were generally meant to uplift the lower economic classes so they did not share a common bond as Credit Union members do.

5 0
3 years ago
Income elasticity measures the:____.
larisa [96]

Answer:

C. Responsiveness of quantity demanded to a percentage change in income.

Explanation:

Income elasticity is defined as the responsiveness of the quantity of a good demanded by an individual as his income changes, all other factors being constant.

Mathematically it is calculated as percentage change in quantity demanded divided by percentage change in income.

Income elasticity is used to find out if a good is a necessity or a luxury good.

The demand for goods that are a necessity does not change with a change in income.

However demand for a luxury good increases as income increases and vice versa

8 0
3 years ago
Accounts receivable and notes receivable are shown as a(n) ____ company's balance sheet. A. liability
Andrew [12]
D) Account receivable and note receivable are showing in Expense
6 0
2 years ago
When calculating the maximum home price using either the front ratio or the back ratio, one result is the maximum monthly paymen
Oksanka [162]

Answer:A. Principal, interest, and escrow for taxes and insurance

Explanation: Front-end ratio is a percentage of your total annual gross income which can be dedicated to the payment of your home loan monthly.

Back-end ratio is a term used to describe the total percentage of your annual gross income which you can put into the servising of your debts.

The maximum monthly payment which a household can sustain covers the PRINCIPAL, INTEREST, AND ESCROW FOR TAXES AND INSURANCE When calculating the maximum home price using either the front ratio or the back ratio.

7 0
3 years ago
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