Banks today have a lot of investment in many areas. They give car loans so if more cars are sold they make money. They sell insurance so with more cars more insurance is needed and they invest in housing so they also sell the insurance for houses. They also have the mortgage industry and make money when a loan for a house is made. They loan companies money to business and make money off the interest they charge. If you use a credit card you are making a loan from a bank. Have a checking account and they charge for the account and charge for a overdraft of money in the account. Use a ATM there is a fee. All of this money goes back into the economy in some way.
Commercial banks cater to normally individuals and businesses, dealing with their loans and deposits. As opposed to an investment bank, which mainly deals with using customers' money to invest, commercial banks engaged in lending to customers and businesses. The most important function of commercial banks lies in the fact that it acts as a mechanism of wealth redistribution. It takes money from those who do not need it and lends it to someone who needs it. These banks are cornerstones of the economy, since such large parts of the economy, both individual and in the private sector, are driven by debt. Their lending allows people to leverage, meaning borrowing money from the bank to magnify their operations. They also keep the money supply liquid, meaning people can get money when they need to.
What are the advantages of a banking sector in an economy
The Service Sector (in a few countries, these activities would be run by the goverment, in which case it's the government sector).
Secondary sector the economy relates to?
what are the function of the service sector of the economy
The relevance of the private sector in the economy is to supplement the government. The private sector helps grow the economy by creating job opportunities in a given economy.
Nominal Sector or Monetary Sector
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The advantages of computers in the banking sector include accuracy, speed and the opportunity to notice trends. Observing this can allow beneficial and directed interactions grooming customers. The disadvantage is that customers are now numbers, not people.
7ps of banking sector
Working in the banking sector has many advantages. You will be doing something different on a consistent basis since every customer is a unique individual. Working with the public on a daily basis definitely does not get boring. There is also opportunity for advancement and a good level of pay.
The tertiary sector is that part of a country's economy that is related to providing services rather than goods. An example would be the banking industry.
What are the contributions of an economist in the banking sector?
The banking sector is essentially where all the money in the world is at. To join the banking sector marks the start of a lucrative career.
roles of accountant in a banking sector
state three relevance itc in banking sector
what are the survival of banking sub-sector
What is the impact of globalization in banking sector in Malaysia?"
The Service Sector (in a few countries, these activities would be run by the goverment, in which case it's the government sector).