Give example of commercial banks how they create money, Macroeconomics

Assignment Help:

Give example of commercial banks how they create money

For example, the borrower uses the money to buy an apartment, the funds are transferred to the seller of the apartment. This will not affect the money supply - now it is the seller of the apartment that has a million available for consumption. If the seller uses the funds to repay the loan he got when he bought the apartment, the money supply will again decrease.

 


Related Discussions:- Give example of commercial banks how they create money

What are the gains from trade, Shows the productivity for the countries Pin...

Shows the productivity for the countries Pin and Pang. Machines Bread Pin     4 or 3 Pang 3 or 8 1) If the working population of Pin and Pang are both 6 million, divide

State the term fall in the exchange rate, state the term fall in the exchan...

state the term fall in the exchange rate A fall in the exchange rate must make UK exports price competitive in international markets and increase demand for them. This should

Calculate variable unit costs and total annual costs, How do you calculate ...

How do you calculate variable unit costs and total annual costs? Ans) Annual units sold, 1000. Raw materials yearly cost 650. Building rent yearly cost 9000. If sales volume enh

Porter''s model affect, How do the five competitive forces in Porter's mode...

How do the five competitive forces in Porter's model affect the profitability of the overall industry? For example, in what way might weak forces increase industry profits, and in

Market supply of labour, Use a graphical illustration to describe briefly w...

Use a graphical illustration to describe briefly what the influence of each of the following would be on the market supply of labor:(a) an increase in immigration (b) more women en

Shift in the demand to the right mean, What does a shift in the demand to t...

What does a shift in the demand to the right mean? Why does the demand curve shift?

Production, mention and explain four factors that determine the volume of p...

mention and explain four factors that determine the volume of production.

Aggregate supply in the short run, Aggregate Supply in the Short Run P...

Aggregate Supply in the Short Run Production takes place in business sector on the basis of an expected price for its output. However, costs are incurred in anticipation of sa

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd