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What is a macro-credit analysis?
Macro means large as in "The Economy as a whole" and credit analysis means the ability of institutions and prople overall to get credit, to honor their commitment to pay back in a timely manner and the extent to which current and expected returns are positive or negative to present economy and future growth of the economy. Sort of intuitive answer.
How did easy credit contribute to the boom times in the 1920's?
With easily available credit, people were able by many things that were beyond their means. With so much money being spent on credit, the economy boomed.
What is credit off-take?
The growth of banking industry is closely interlinked with the growth in the economy. Slowdown in economy in the past few years meant lower credit offtake. With lower demand for credit, banks had no option but to invest in low yielding Government securities (G-sec). However with the recent recovery in economy the credit offtake is likey to pick-up and pick-up in credit offtake means deploying funds to the commercial sector and earning a higher return than G-sec. Recovery in the select sectors, like steel, textile and capital goods which have high credit consumption, has lead to pick-up in credit offtake. This clearly means a good topline growth for the banks.
What is loan growth?
Loan growth refers to the increase in the total amount of loans that a financial institution, such as a bank, extends to borrowers over a specific period. This growth can be measured in terms of the dollar amount or percentage increase in the loan portfolio. Factors influencing loan growth include economic conditions, interest rates, and consumer demand for credit. Healthy loan growth is often seen as a sign of a thriving economy and can contribute to a bank's profitability.
Why are financial intermediaries so important to an economy?
Financial intermediaries, such as banks and investment firms, play a crucial role in an economy by facilitating the flow of funds between savers and borrowers. They help allocate resources efficiently, enabling individuals and businesses to access credit for investment and consumption. Additionally, these intermediaries manage risks and provide liquidity, which enhances economic stability and growth. By pooling savings and offering diversified financial products, they also contribute to the overall efficiency of financial markets.
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.
Explain growth of the global economy?
There are only three factors that constitute and contribute to economic growth: Labor, Capital, Technology.
How do enterprises contribute to economic growth?
Business enterprises contribute to economic growth by providing employment opportunities. This allows for more financial success and more money to flow into the economy.
How do bank loans contribute to the growth and stability of a nation's economy?
Bank loans contribute to the growth and stability of a nation's economy by providing businesses and individuals with the necessary funds to invest in projects, expand operations, and stimulate economic activity. This increased spending leads to job creation, higher production levels, and overall economic growth. Additionally, the availability of credit helps to smooth out economic fluctuations and maintain stability by providing a financial cushion during times of economic downturn.
How do business enterprises contribute to economic growth?
Business enterprises contribute to economic growth by providing employment opportunities. This allows for more financial success and more money to flow into the economy.
What would contribute to a sustained high rate of economic growth in the long run in an economy?
growth in capital per hour accompanied by technological change
What is one way people contribute to the supply of credit in the economy?
By offering loans, saving money, or, in some cases, investing.
What is a macro-credit analysis?
Macro means large as in "The Economy as a whole" and credit analysis means the ability of institutions and prople overall to get credit, to honor their commitment to pay back in a timely manner and the extent to which current and expected returns are positive or negative to present economy and future growth of the economy. Sort of intuitive answer.
What caused the economic growth of the US's economy after World War 2?
The invention of credit cards
How does high envestment levels in physical and human capital contribute to long term growth in the economy?
I need this answer too :(
How did corporations contribute to the growth of the economy in the late 1800?
Their stockholders provided capital to build factories and buy equipment
Why is credit an important part of the economy and how does it impact financial stability and growth?
Credit is important in the economy because it allows individuals and businesses to borrow money to make purchases or investments. This helps stimulate economic activity and growth by enabling people to buy homes, start businesses, and make other important financial decisions. However, too much reliance on credit can lead to financial instability if borrowers are unable to repay their debts, which can have negative effects on the economy. Therefore, maintaining a balance between access to credit and responsible borrowing is crucial for financial stability and growth.
