what if the Bank of Cheap Loans tries to charge an even lower rate?

Q: Differentiate between deposit taking and non-deposit taking financial institutions with one real…

A: There are many types of financial institutions in the economy. The main two types of financial…

Q: Is Islamic banking really different?

A: Banking: These are the services provided by a bank.

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: Why do loan sharks worry less about moral hazard in connection with their borrowers than some other…

A: The person who charges a very high-interest rate when lending is known as loan sharks. Moral hazard…

Q: should banks have the right to assign a mortgage to a third party?

A: Answer in step 2.

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 is the major function of general banking operation?

A: When talking about banking operations, it can be said that this market includes the exchange of…

Q: At which stage money laundering is easy to detect?

A: Money laundering refers to an illegal process of producing a huge amount of money that is generated…

Q: What are some factors to consider when choosing a bank?

A: Banks are the financial institutions that are very important in every economy. They are the main…

Q: How do you think the banking sector has evolved overtime?

A: Banking, health, and education are the major sectors that can describe the situation of a nation.…

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 included in bank supervision?

A: Answer -  Bank supervision -  Bank supervision is law or act under which authorities can monitor…

Q: Why banks are best regulated by the markets

A: Banks are the financial institutions that are generally regulated by the central bank.Central bank…

Q: Why does the firm have to borrow the bank's liability rather than use its own? Explain briefly.

A: Start-ups and small businesses seeking to expand frequently have one thing in common: they require…

Q: Buying a cup of coffee with a dollar bill represents the use of money as a

A: (Q) Buying a cup of coffee with a dollar bill represents the use of money as a (Q) Buying a cup of…

Q: why is banking important to the economy? and why do banks need to be regulated?

A: Banks are government Authorised, here people can put their money safely and also banks provide loans…

Q: The inadequacy of money supply circulating or available in the financial system makes the trading of…

A: International trade agreements govern the exchange of goods and services between two or more…

Q: Suppose consumers lose their faith in the banking system, and decide to start stuffing their money…

A: A industry may be a group or network of institutions that provide financial services. The key styles…

Q: If you were on an island with 10 other people and there were no money, do you think that money would…

A: Money economies and barter economies are the two sorts of economies. Our modern economies are based…

Q: How would you determine the interest rate that the bank charges on the transaction?

A: Many payments are made through our bank accounts and each transaction has a cost attached to it. The…

Q: If people use ketchup packets as a medium of exchange, what type of money would they be?

A: When ketchup packets act as medium of exchange then the money would be called as commodity…

Q: why is it necessary to regulate banks

A: Many reasons are there behind the regulation of bank is vital for banks but some reasons are very…

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 is the effect of money laundering in the economy? Explain your answer.

A: Money laundering refers to the illegal process of making large amounts of money, usually generated…

Q: How does Micro Credit differ from money center banks?

A: Introduction Microcredit is a type of microfinance that essentially gives an individual a very…

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: Why credit cards are not money? Explain any five points.

A: Money is any object which is acceptable legally as payment for services and goods and also for the…

Q: Do commercial banks have different categories

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

Q: How would a rise in interest rate affect a bank’s profit?

A: 1.The banking sector and interest rates are significantly related. 2. Profitability of banks…

Q: money supply,

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: What distinguishes money from other assets in theeconomy?

A: Following are the points which distinguish money from other assets : 1. Money is highly liquid as…

Q: Is Bitcoin legal tender anywhere in the world? Explain and cite your source?

A: Concept The digital money is a peer-to-peer system. Bitcoin first appeared in 2009, introduced the…

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 the banking system create money? Explain

A: The important function which the banks performs is the creation of money in the economy. This…

Q: How does Adverse Selection potentially affect a Bank and how can a bank overcome (some of) the risk…

A: Adverse selection occurs when buyers have better information than sellers, and this can distort the…

Q: The Federal Reserve Banks are owned by the

A: Option A is wrong because,  The Federal Reserve Banks are not a piece of the national government,…