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When a firm makes annual deposits to repay bondholders at maturity, it is using a

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Q: When a firm makes annual deposits to repay bondholders at maturity it is using a?
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When the entire banking system makes use of excess reserves to grant new loans in the form of deposits does the credit multiplier increase?

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Why do banks pay their customers interest on the money in their bank accounts?

Banks make money by loaning out money that has been deposited in the bank and charging interest on it. They are limited as to how much money they can loan by how much money has been deposited in the bank. To encourage people to deposit money in the bank they offer to pay some interest on the deposits. The interest paid on the deposits is less than what they charge people who borrow that money. For example: they might pay 1% annual interest on a deposit of $100,000 - which will cost them $1,000. While that money is on deposit, they loan out $80,000 of it at 5% interest - which makes them $4,000 - for a profit of $3,000. They interest they pay to their customers is an inducement for them to make deposits so that they have more money to loan out and thus can make more money.

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What is maturity intermediation?

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What is customer deposits?

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Interest on maturity is better or monthly interest?

If you need a monthly income then obviously a monthly income is better. If the monthly interest is not withdrawn then it makes no difference because the annual interest rate is usually equal to the compounded monthly rate.


Can you give me a sentence with the word annual?

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Basic and annual salary are the same thing. They are how much a person makes in a year.


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Communities change due to various factors such as population growth, economic development, technological advancements, and social and cultural influences. Changes can also be driven by natural disasters, political events, or shifts in demographics. Ultimately, communities evolve as a result of a combination of internal and external forces that shape their dynamics and characteristics over time.


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