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Because - the borrower is 'in debt' to the lender until the borrower either returns the object (or money) borrowed.
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Why do you think financial markets are required?
They act as a link between renders and borrowers
Who is helped by inflation?
Debtors, borrowers of the expense of the lender, pornographers.Government officials, COLA union members, speculators, foreign business members, and borrowers all benefit from inflation.Sourcehttp://shsapeconomics.blogspot.com/2007/11/is-inflation-always-bad-thing.html
What financial institution is considered a lender of last resort?
In the United States, the Federal Bank of New York is considered to be the lender of last resort. In world economics several international financial organizations are lenders to nations in dire economic straits.
Why was African slave trade necessary?
Slavery has been around since the beginning of human history. Slaves were prisoners of war, convicts, or peoples that were considered inferior. Europeans considered Africans to be inferior in a"Social Darwinism" way. But before Darwin even appeared,Europeans considered themselves superior to Africans because of their advanced technology and civillization. It was actually rival slave tribes thatwould capturethe enemy tribe members and sell them to the Europeans. The African slaves tribes really hit their stride in the early 1800's when there began to heavydemand for slaves in the newfrontiers such as the US. Big Plantations in the South America, Carribean, and in the south US, neccessitated a large manlabor pool and the slaves were necessary in order for them to make the agarian culture thrive at its highest level.
Discuss how a rapid rate of inflation might affect different groups within an economy?
Rapid inflation will harm all groups through reducing real values, creating uncertainty, instability and harming the efficient operation of the market system. The level of inflation will influence the severity of any effects. Those who benefit include the government, borrowers, importers and some producers. Those who suffer include fixed income earners, lenders, exporters and some producers.
What is the relationship between lenders and borrowers?
Lenders have something (usually money) that the borrowers want; and the Borrowers have something that the Lenders want (their money back).
Who are lenders and borrowers?
Lenders are the banks and finance companies who contract loans for the purchase of vehicles, homes, and other property. Borrowers are those who contract for the loans so they may purchase vehicles, homes, and other property. Although you did not ask, dealerships and realtors are those who act as the agents of the lenders to put borrowers in debt.
What is conventional uninsured mortgage?
Candidates for conventional, uninsured loans are considered prime borrowers. They have at least a 20 percent down payment, good credit and enough income to make mortgage lenders feel safe. Lenders require insurance on loans when borrowers lack sufficient money or credit to offset the risk of financing a home.
What advantages and disadvantages do commercial banks gain from maintaining lenders and borrowers?
Lenders (depositors) are an essential source of any bank's main tool i.e the fund. The borrowers provide the profit (interest) which makes the whole system revolve.
What do you called a charge borrowers pay to lenders?
Interest, late fee, returned check charge...
Do lenders have stringent guidelines when it comes to borrowers with bad credit?
People with bad credit have a hard time getting a loan. Lenders want to ensure they will be paid back.
Specified amounts of money borrowers must pay lenders for the use of money or borrowed funds is are known as?
interest
When financial institutions lend money they charge borrowers?
The banks or lenders charge interest. The amount depends on your credit.
Getting a Low Interest Rate for an Auto Loan?
Interest rates for auto loans will vary from lender to lender so savvy borrowers should check with multiple lenders before choosing who to borrow from. Lenders base the interests rates they offer their borrowers on factors such as the borrowers' credit report score, income and collateral. Borrowers who are clearly in a position to afford the vehicles they are purchasing and who have credit history that puts them in good standing will be able to secure low interest rates for their auto loans, especially when they carefully consider the rates offered by different lenders before selecting their loan provider.
Will lenders allow someone to remortgage their home if the credit is bad?
There are lenders who specifically lend to borrowers with blemished credit but the homeowner will typically pay higher interest rates and fees. Borrowers should attempt to improve their credit before trying to refinance by lowering debt and clearing up any inaccuracies that may appear on their credit report.
How much interest is paid to cash advance lenders?
Cash advance lenders charge outrageous interest rates to borrowers, ranging anywhere from thirty percent to three-hundred percent. This is why it is advised never to borrow from a cash advance lender.
What are the difficulties in taking personal loan?
Difficulties in taking personal loans? Some lenders require their borrowers to make $1,000 or more every 30 days.
