Compounding. If you compound your interest, then your interest rate will go up, and you get more interest.
What are asking I am confused
Answer:
D. Loans are the largest assets and deposits are the largest liabilities
Explanation:
Banks represent financial institutions wherein customers can either save their money or borrow money. Banks ideally serve as an intermediary between borrowers and lenders.
Banks avail funds from the lenders who want to deposit and keep their money safe. Such depositors are paid an interest on the money deposited. Out of the pool of funds created through such deposits, a bank lends these funds to the borrowers who are in need at a rate higher than the rate it provides to it's depositors.
Thus, the money granted as loan to the borrowers by a bank represent it's largest assets, which it will receive in future. While deposits, which the bank has to return to the depositors upon demand, represent a bank's largest liabilities which it must meet.
Increasing opportunity cost along a bowed-out production possibilities frontier occurs because <u>of the scarcity of factors of production</u>.
The law of increasing opportunity cost holds that as an economic system moves alongside its manufacturing opportunities curve inside the path of producing extra of a particularly appropriate, the possibility fee of additional devices of that truth will increase.
The opportunity cost is time spent analyzing and that money to spend on something else. A farmer chooses to plant wheat; the opportunity fee is planting an extraordinary crop or a trade use of the sources (land and farm gadget). A commuter takes the train to work as opposed to riding.
Opportunity cost is an economic time period that refers back to the cost of what you have to give up that allows you to pick something else. In a nutshell, it is the cost of the street not taken.
Learn more about opportunity cost here: brainly.com/question/1549591
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