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When banks make loans, the money supply increases, since the people who receive these loans will have more money.
Banks may get money to make loans, by the following ways: a. Use their Capital Reserves b. Accept Deposits from customers c. Borrow money from other banks d. Borrow money from the central bank
no, encouraged maybe, but not forced.
false
Loans from banks and cooperatives
When banks make loans, the money supply increases, since the people who receive these loans will have more money.
Yes, it is a major source of a banks income.
to make loans Investments, loans, mortgages, and of course salaries for the staff.
all banks do not forgive loans
Yes, it is a major source of a banks income.
Banks may get money to make loans, by the following ways: a. Use their Capital Reserves b. Accept Deposits from customers c. Borrow money from other banks d. Borrow money from the central bank
yes
no, encouraged maybe, but not forced.
false
Many different ways, but the most common way would be from giving out loans and collecting interest from them. Loans such as mortgages, business loans and more.
Banks use excess reserves to make loans to customers so that they can make profits on the interest.
The banks give loans here