what does it mean when banks are paying people to get loans?

Q: How does the credit card company calculate the interest payment?

A: The credit card has been an important tool to increase the purchasing power. This facility has…

Q: Can we prosper without credit and banks? Explain.

A: A Bank is defined as a financial institution in an economy that gives out loans and accepts…

Q: Banks may money out of other people's money. True False

A: The banks can generate money from people money and this can be done in many ways, one way is to use…

Q: How do banks create money?

A: Money and Banks are intertwined. Banks are one of the financial institutions of the nation. A major…

Q: What is financial system

A: A financial system is the one in which in which we have buyers, sellers and investors.

Q: why do government keep banks small?

A: In economics, we study how scarce resources are used by decision-makers to satisfy the unlimited…

Q: What does the seller’s bank do?

A: A real estate deal in which the seller, rather than a financial institution, manages the mortgage…

Q: What is financial inflow?

A: The net amount of cash and the all cash equivalents being moved in and out of a corporation is…

Q: How fast Can someone get a bank loan?

A: A bank takes into account several things when considering whether or not to extend a loan to…

Q: If you were going to get a loan to purchase a new car,which financial intermediary would you use: a…

A: ANS A credit union is a cooperative that is owned by members those who shares the profits, these…

Q: A is an example of revolving credit.

A: Credit refers to a ‘contractual agreement’ in which a borrower gets something of value now &…

Q: Advantage and Disadvantage of Building and Loan Associations from Private Nonbank Thrift…

A: The loans are amount of money which are borrowed by the various individuals or the firms. The loans…

Q: Using an example explain what the shadow banking system is and how it works.

A: The shadow banking system is not like long-established banks and lending institutions because these…

Q: What is the role of commercial banks in the economy? Why are they important?

A: There are some business cycles which have to be known by the business management and also the…

Q: Explain why someone might want to put a “red flag” on their own credit report.

A: A red flag refers to a warning that is put on the credit report if something suspicious, fraudulent,…

Q: Draw or write a diagram showing how the money you put into bank account works to the benefit of the…

A: As an individual when the money is put in the bank account it would benefit anyone as the money is…

Q: How do banks create money?  Please explain

A: Under the fractional reserve banking system, the banking institutions keep aside a fraction of…

Q: three ways in which banks use to make profit

A: Three ways banks can make profit 1)By providing loans and earning interest on it. 2)By investing in…

Q: Why do the creditors generally charge higher interest rates on new borrowing?

A: The interest rate is the amount that the creditor charges with the principal from the borrower to…

Q: What are commercial loans?

A: Loan is a type of debt instrument in which a sum of money is borrowed by an individual or a firm…

Q: rite a paragraph about the topic "Credit Cards". How do you feel about the use of credit cards ? Do…

A: Introduction: The situation of one's own financial affairs is referred to as one's financial health.…

Q: why do we need banks and financial institutions

A:

Q: How is money can be loaned and repaid?

A: A loan is when an amount of money is given to another party in exchange for repayment of the loan…

Q: What is the cheapest loan?

A: A loan is the lending of money by an individual or a group to another individual or a firm, with an…

Q: What Is a Commercial Bank?

A:

Q: History of money

A: The word money means a medium of material where one can exchange goods and services.

Q: Benefits of government regulating banks.

A: Bank regulation is basically a kind of govt regulation that, among other things, sets certain rules,…

Q: 1. What are some of the problems with paying only the minimum monthly payment on a credit card? 2.…

A: 1. The primary use of credit cards is to use money and repay without interest. If one is paying only…

Q: How do investment banks works?

A: Banking is an integral part of economics, which accepts deposits from people and generate loans for…

Q: what are the three main credit bureaus? They should explain how each one works and how they are…

A: This chapter is related to credit bureau. Credit bureau, also known in the US as credit reporting…

Q: Why is money considered fungible?

A: The term “fungibility” means the sate of interchangeability. Money is a unit that acts a measure of…

Q: What does it mean when a bank is labeled “too big tofail”?

A: Banks are financial institutions that act as an intermediary between the investors are borrowers.…

Q: The first thing paid when repaying a loan is the principal. True or False?

A: Principal denotes the original amount of money borrowed by the individual for meeting his/her needs.…

Q: Do commercial banks have different categories

A: - Commercial Banks(CBs) are the financial institutions that provide basic investment options as…

Q: As a student, are you saving or borrowing? Why?

A: Disparities in income and expenditure encourage people to save or borrow. An individual who makes a…

Q: To deposit and withdraw funds from linked bank accounts, which system call will be used? Withdraw…

A: A linked account is one that is linked to another at the same financial institution so that money…

Q: Lenders use your credit score -- to see if you've earned your degree to criticize your financial…

A: A credit score is a report that states the person's previous and present loan details, repayment…

Q: How online banking affects money demand?

A: The equilibrium in the money market is attained at the point where the money supply intersects the…

Q: How does amortization help in making loans affordable?

A: Concept Amortization is the technique of repaying a loan in monthly interest and principal…