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Q: Why are borrowing and lending money important?
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What is call money and notice money?

The term "Call money" is borrowing or lending money for 1 day. The term "Notice money" is borrowing or lending money for a period of 14 or more days.


Is high interest rate good or bad?

That depends on whether or not you're lending or borrowing. Lending = good Borrowing = bad


When we talk of interest rates are these the borrowing rates or the lending rates?

When we talk of interest rates , we are talking of the interest rate on the total amount of money borrowed by a person.


What is risk free lending and borrowing?

In any kind of business transaction, all of the parties generally acknowledge that there is a level of risk that could lead to unforeseen losses to either party. This is particularly true in borrowing or lending money. The borrower could default on the loan for any number of reasons, and the lender could be left short. In addition, the interest rate could change, forcing one of sides to receive a different total return on the transaction than originally anticipated, which could have far-reaching effects. In the world of finance, however, there is a concept of risk-free borrowing and lending, where both sides know exactly what they are getting at any particular time and the amount of money is virtually risk-free. A prime example of this time of borrowing and lending is through purchase of US Treasury Bills.


What is the definition and procedure of money market hedge?

Money market hedge is defined as borrowing and lending money in multiple foreign currencies to lock in that currency's value. This can be done by selling commercial paper, or by purchasing certificates of deposit for a short term.

Related questions

What is call money and notice money?

The term "Call money" is borrowing or lending money for 1 day. The term "Notice money" is borrowing or lending money for a period of 14 or more days.


What is the definition of interest in math terms?

The charge for borrowing something (money) or the return for lending it


Is high interest rate good or bad?

That depends on whether or not you're lending or borrowing. Lending = good Borrowing = bad


When was Jamaica's independence?

Jamaica is not independent because we have to be borrowing money from overseas lending agencies and even more things


What is the interest on 10.000.000?

The answer depends on the interest rate! This will depend on a number of factors:whether you are borrowing or lending that money,for how long,in which country,the risk of default on the loan.


What best describes the economic effect that results when the government increase interest rates and restricts the lending of money?

Borrowing money becomes more expensive and there is less investment in production.


What were the most important purpose of early banks?

The lending of money.


What are the Koran laws?

The Koran laws are called in Arabic 'Sharia'a' that define God rules in marriage, divorce, inheritance, witness, money lending and borrowing, ...


What are the advantages of borrowing money?

what are the advantages of borrowing money


When we talk of interest rates are these the borrowing rates or the lending rates?

When we talk of interest rates , we are talking of the interest rate on the total amount of money borrowed by a person.


Is money lending a valid contract?

It depends on the contract If you are borrowing from a bank or other valid institution I will guaranty the contract will be valid and enforceable. If you are borrowing from your local loan shark, the "contract" may not be valid, but do you want to take the chance?


What is risk free lending and borrowing?

In any kind of business transaction, all of the parties generally acknowledge that there is a level of risk that could lead to unforeseen losses to either party. This is particularly true in borrowing or lending money. The borrower could default on the loan for any number of reasons, and the lender could be left short. In addition, the interest rate could change, forcing one of sides to receive a different total return on the transaction than originally anticipated, which could have far-reaching effects. In the world of finance, however, there is a concept of risk-free borrowing and lending, where both sides know exactly what they are getting at any particular time and the amount of money is virtually risk-free. A prime example of this time of borrowing and lending is through purchase of US Treasury Bills.