When the Government could not meet the cost of infrastructure projects and also when there is a huge deficit budget borrowing could not be avoided. But the Government has to calculate the foreign exchange reserves it has and the GDP vs External Debts ratio.
The process of paying a bank to let you borrow money is called "interest."
Money is CREATED by governments, not banks. They store money. Banks also EARN money by loaning money to people. People pay the banks back more money than they borrow (interest)
When you borrow money from a bank they pull cash from the bank's reserves. This collection of cash is the net cash reserves within the bank or its network from depositors in the system.
whom should you see at the bank if you need to borrow money? worksheet answer key
we take/borrow money from the commercial banks and the commercial banks take/borrow money from the reserve bank
$500billion
25 billion
the bank
The process of paying a bank to let you borrow money is called "interest."
The person who borrow money.
Money is CREATED by governments, not banks. They store money. Banks also EARN money by loaning money to people. People pay the banks back more money than they borrow (interest)
When you borrow money from a bank they pull cash from the bank's reserves. This collection of cash is the net cash reserves within the bank or its network from depositors in the system.
whom should you see at the bank if you need to borrow money? worksheet answer key
Money market banks are a large financial service firm that offer commerical lending service. They lend and borrow from governments, banks and large corporations.
2
we take/borrow money from the commercial banks and the commercial banks take/borrow money from the reserve bank
A bank employee that helps customers borrow money would be called a loan officer.