factors limit the credit creating ability of commercial bank
The typical consumer has access to approximately $19,000 on all credit cards combined." If you're someone who has an unwanted credit card balance, there are ways to get out of credit card debt but you must first make the decision to stop using your cards and begin attacking the balances.
The monetary flow in a given economy as a result of the access to the credit makes the economy grow which includes the circular flow.
1. Bank Credit to Government 2 Advances to Private Commercial Sector3.Foreign exchange assets (net) of Banking Sectorless Non-monetary liabilities.
1. Bank Credit to Government 2 Advances to Private Commercial Sector3.Foreign exchange assets (net) of Banking Sectorless Non-monetary liabilities.
liquidity
Liquidity :P BB
Credit has no impact on one's assets.
in fix assets
Credit causes the decrease in assets only because assets has debit balance as a normal balance while all other items has credit balance and credit causes the increase in them.
Having financiial depth is having access to monies whether it is cash or assets or both it can be in forms of bonds mustal funds or even haveing the credit to access large sums of monies normally meaning a person is wealthy or has the ability to create weath through his business or assets Having all of the above would be being diversified but haveing large sums of any woould be depth. the key being large sums.
Intangible assets are assets like other assets and have debit balance so these are also increased by debit only and reduce by credit.
The 3 C's of credit are character (credit history and reputation), capacity (financial ability to repay debt), and collateral (assets that can be used to secure a loan). Lenders use these factors to evaluate a borrower's creditworthiness when deciding whether to approve a loan.
Your occupation is irrelevant. It's your credit rating and ability to pay back the debt that matters. Nobody is going to give you credit unless you have some means of paying it back -- even if it means losing your house. It doesn't matter if you're an athlete or an astronaut. If you have assets, you can get credit.
ask Northern Rock bank!If you dont have enough liquid assets then you pay for things on credit to the value of the company.If the creditor calls in your debt then you would be forced to raise the cash quickly or sell assets
Decrease in assets
Decrease in assets