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When banks make loans the money supply increases or decreases?
When banks make loans, the money supply increases, since the people who receive these loans will have more money.
What does it mean by contract the money supply?
It means to decrease, or lower, the money supply. EXAMPLE: The feds sold treasury bonds and bills in order to contract (decrease) money supply.
Va pensions are thay except liens and paying money bank to payday loans?
are va pensions except from liens and paying back payday loans and bank loans
What do the Fed do to the money supply to discourage bank loans?
decrease
What do the feds want to do to the money supply to encourages bank loans?
increase
How do people contribute to the supply of credit in the economy?
People contribute to the supply of credit in an economy by offering loans to consumers. These would be banks, credit unions, payday loan companies, etc. Consumers contribute to the supply of credit by borrowing money and paying interest, sometimes at very high interest rates.
What is the most likely effect of the Federal Reserve lowering the discount rate on overnight loans?
The most likely effect of the Federal Reserve lowering the discount rate on overnight loans would be an increase in the money supply. an increase in the money supply
What are the risks of unsecured personal loans?
Unsecured personal loans can result in being robbed. You may never see your money again because a contract was not signed by both parties. Unsecured personal loans can result in being robbed. You may never see your money again because a contract was not signed by both parties.
What exactly are easy student loans?
Student loans are loans, or money, that is given to students who need assistance in paying for their education/schooling. Easy student loans is mostly likely an easier, simpler way for college students to qualify.
What is the most likely effect of the fed lowering the discount rate on overnight loans?
An increase in the money supplyAn increase in the money supply
What are the factor affecting money supply?
The factors that affect money supply are the required reserves for bank rates. Money is mostly created by loans, therefore the shadow banking system is the one that creates the loans. The federal banking system does not control the shadow banking system, so therefore there are no reserve requirements.
What are the factors that affect the money supply?
The factors that affect money supply are the required reserves for bank rates. Money is mostly created by loans, therefore the shadow banking system is the one that creates the loans. The federal banking system does not control the shadow banking system, so therefore there are no reserve requirements.
