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Private banks, financial institutions and other private financial organisations can only increase circulation, they can never create money because they can no longer add a credit without accounting for a debit as they did for centuries under the goldsmith theory of banking. Today only the Fed can credit without debiting and they can only do so under the authorization of Congress who give them that authorization in big blocks such as the $2 trillion authorized 2008 to early 2009 to support the shaky banking system.
Though they are many times the formal activator of the process, the Treasury cannot create money either because they can neither debit nor credit anybody's
account. They can only request (by check) such debiting and crediting just as you and I do.
But that is old theory. This crisis has taught us that the Treasury can, under Congressional authority, print treasuries, give them to bankrupt banks, and all without debiting or crediting anyone's
bank deposit. Since it adds to a bank's net equity balance, that is creation of money.
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What type of corporations are owned by their stockholders?
private
What is true of private corporations?
They are not owned by the general public
Why did the number of corporations grow dramatically after the 1870?
Corporations had access to money and new technology.
How do corporations attempt to protect the interest of stockholders?
Corporations try to protect the interest of stockholders by maximizing profits. The more money they more, the more money they will have for their investors.
What is the cost of borrowing for large us corporations?
When corporations borrow money they usually borrow from investors. When they do this, they are selling pieces of their business.
Who was allowed to loan money to private corporations?
It depends on the economy in question, but generally speaking, anyone (be it a natural person or a corporate person) who has capital can invest it or loan it to private corporations.
Which of these was authorized to loan money to private corporations railroads industries and banks?
Reconstruction Finance Corporation.
Which type of corporations are those owned by stockholders?
private corporations
What type of corporations are those owned by stockholders?
private corporations A+
What most corporations fall into which category?
private
What corporations fall into what category?
private A+
How rich is Walt Disney?
Very rich..if he were not deceased, now the money is in corporations, stocks and private investments.
What do government corporations and private corporations not have in common?
The function of government corporations is to serve a public need, in various fields including transportation, finance, communications, and energy. Private corporations can determine their own consumer base and business plans.
What do government corporations and private corporations have in common?
The function of government corporations is to serve a public need, in various fields including transportation, finance, communications, and energy. Private corporations can determine their own consumer base and business plans.
Government corporations and private corporations are different in all what ways except?
government corporations do not perform a particular economic function.
What type of corporations are owned by their stockholders?
private
What are the two types of corporations?
From the standpoint of stock sale, there are two kinds of corporations: public and private.
