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What do the Fed do to the money supply to discourage bank loans?
Wiki User
∙ 11y ago
decrease
Wiki User
∙ 11y ago
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What do the feds want to do to the money supply to encourages bank loans?
increase
Who loans you money?
the Bank
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.
Why was the creation of a national bank so important to the U.S economy?
The national bank controlled the money supply
What are the factor affection 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.
How can a bank expand the money supply if someone deposits 5000 in a demand deposit in that bank and the bank has to maintain a 5 percent reserve?
the bank will have to reduce their interest rate in order to attract people to make more withdrowals and also contrac loans
Does The Bank of Montreal offer unsecured loans?
No the The Bank of Montreal does not offer unsecured loans. No banks offers unsecured loans then that won't have anyway of knowing if they lent you money.
How did people get money form the bank?
People get money from a bank by means of loans. The different types of loans available from banks are: 1. Personal Loans 2. Automobile Loans 3. Home Loans (Mortgage Loans) 4. Loan against Securities 5. Gold Loan 6. etc.
What products do banks produce?
Bank use money to make money. When you deposit money into your bank a portion of that goes into the vault as a reserve the rest of it is given out as loans. When a bank makes a loan for say a car that money eventually makes it to another bank. You give the money to the dealership then they put it in the bank. Their bank then puts some in the vault as a reserve and lends the rest of it out as loans. So now the same money that belonged to your bank nows belongs to a third party and there are now two loans on the same money. This is how banks make up money.
Va pensions are thay except liens and paying money bank to payday loans?
are va pensions except from liens and paying back payday loans and bank loans
Why is the supply of money in an economy not solely determined by central bank?
The supply of money IS controlled by the central bank. However, in some countries the politicians interfere with the Central Bank.
