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Q: How do banks bring savers and borrowers together?
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What does a financial system bring together?

savers and borrowers


Give an example of three financial intermediaries and explain how they act as a bridge between small investors and large capital markets or corporations?

- Banks, investment companies, insurance companies and credit unions - Households want desirable investments for their savings, yet the small size of most households makes direct investment difficult. They don't advertize to lend money to businesses and are not equipped to analyze the credit risk of borrowers - For these reasons, financial intermediaries have evolved to bring lenders and borrowers together. i.e. A bank raises funds by borrowing (taking deposits) and lending that money to other borrowers. The sprad between the interest rates paid to depositors and the rates charged to borrowers in the source of the bank's profit. In this way, lenders and borrowers do not need to contact each other directly.


When did Bring Us Together happen?

Bring Us Together happened in 1968-10.


Forces that bring people together are called?

Centripetal forces bring people together.


What is local area bank bank?

In some cases, the Regional banks set up by the governments are not being run profit­ably for various reasons. Secondly, these banks are not meeting fully the credit require­ments of regional borrowers. With a view to bring about a competitive environment and to overcome the deficiencies of Regional banks, Government has permitted establishment of a new type of regional banks in rural and semi-urban centres under private sector known as 'Local Area Banks'. These banks require a low Capital base of Rs. 5 crore only. The entire share capital has to be mobilized from private sector. They will be permitted to operate only within a region of 2 or 3 districts. Local Area Banks are yet to become operational in India as of June 1999.


How do food banks use their money?

They bring the money to an orphanage and shred it in front of them.


What does re-unit mean?

To bring or come together again.


What does a swicth bring together?

a switch brings together circuits


Why did Andrew Jackson take away the federal charter?

he was not in favor of banks he knew they would bring trouble... he set up state banks that were called "pet banks" these later resulted in Panic of 1837


What are the differences between a mortgage company and bank when getting a home loan?

Banks usually work together when making payments for your loan. A mortgage company is basically paid a fee to bring together lenders for profit. More information is available at http://homebuying.about.com/cs/mortgagearticles/a/home_lenders.htm


What Different elements is to bring them together?

me


To bring different elements together is what?

me