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What happens to the money supply when a loan is repaid?
it maintains steady circulation of money in the economy
When banks make loans the money supply increases or decreases?
When banks make loans, the money supply increases, since the people who receive these loans will have more money.
When a bank loan is repaid does the money supply increase?
No, in the United States banking system, when a bank loan is repaid, the money supply goes down by the amount of the principal that was paid off. When banks lend out money, that money is created out of thin air by a accounting journal entry, and the money supply goes up by the amount of the loan. When the loan gets paid off, that money disappears back into thin air and the money supply goes back down.
Where can you find money to fix your house?
You can check with your town offices to see if there is any grant money available for your neighborhood or your income level. You should also inquire about low interest loans and loans that don't need to be repaid after a certain number of years residing in the property.You can check with your town offices to see if there is any grant money available for your neighborhood or your income level. You should also inquire about low interest loans and loans that don't need to be repaid after a certain number of years residing in the property.You can check with your town offices to see if there is any grant money available for your neighborhood or your income level. You should also inquire about low interest loans and loans that don't need to be repaid after a certain number of years residing in the property.You can check with your town offices to see if there is any grant money available for your neighborhood or your income level. You should also inquire about low interest loans and loans that don't need to be repaid after a certain number of years residing in the property.
What do the Fed do to the money supply to discourage bank loans?
decrease
What do the feds want to do to the money supply to encourages bank loans?
increase
If a creditor loans money for a 5 year period during which there is intense deflation will his repaid loan buy more or less goods or services?
more
What type of loan requires the borrower to make monthly payments?
Most loans require monthly payments. The ones most referred to in this category are mortgages, car loans, personal loans, and credit card loans. Also, student loans are repaid monthly and usually after a student has left college or has graduated from college. There are some loans where the repayment is in the form of a lump sum. One example of this is margin loans from a stockbroker. Normally when a stock is bought or sold on margin, the money borrowed to complete the transaction is repaid to the stockbroker in a lump sum.
What is the most likely effect of the Federal Reserve lowering the discount rate on overnight loans?
The most likely effect of the Federal Reserve lowering the discount rate on overnight loans would be an increase in the money supply. an increase in the money supply
What is the most likely effect of the fed lowering the discount rate on overnight loans?
An increase in the money supplyAn increase in the money supply
What are the factor affecting money supply?
The factors that affect money supply are the required reserves for bank rates. Money is mostly created by loans, therefore the shadow banking system is the one that creates the loans. The federal banking system does not control the shadow banking system, so therefore there are no reserve requirements.
What are the factors that affect the money supply?
The factors that affect money supply are the required reserves for bank rates. Money is mostly created by loans, therefore the shadow banking system is the one that creates the loans. The federal banking system does not control the shadow banking system, so therefore there are no reserve requirements.
