Most of the money in our economy is created by banks, in the form of bank deposits – the numbers that appear in your account. Banks create new money whenever they make loans. 97% of the money in the economy today exists as bank deposits, whilst just 3% is physical cash. This short video explains:
The money that banks create isn’t the paper money that bears the logo of the government-owned Bank of England. It’s the electronic deposit money that flashes up on the screen when you check your balance at an ATM. Right now, this money (bank deposits) makes up over 97% of all the money in the economy. Only 3% of the money is still in that old-fashioned form of cash that you can touch.
I hope this helps you.
Answer:
A. Knowing what you have spent your money on is simple.
Explanation:
Although each answer may be deemed true in a way, it is important to realize the differences between cash and a credit card. Psychologically, if you’re purchasing items with cash you tend to spend less because you are budgeting yourself to a certain amount. Always counting the change after. If you pay with a credit card you may spend more unconsciously, making it a lot easier to lose track how much you’ve spent, and bought.
Answer: c. The Gravitational Force forms an action-reaction pair
Explanation:
Newton's third law of motion talks about how for every amount of force exerted, there is an equal yet opposite reaction force exerted. This gives rise to Action-Reaction pairs.
Gravitational force forms an action-reaction pair when it is exerted for instance, the Gravitational force exerted on a person by the Earth is a person's weight. At the same time however, the person is exerting a gravitational force on the earth in the form of their weight.
