Question

Which of the following correctly explains where banks get the money to lend consumers?

a) From people who open accounts
b) From profits made on interest charges
c) From the Federal Reserve
d) From other banks in the same district

Answer 1

medals given! :)))))

@ILovePuppiesLol

Answer 2

As mentioned before, banks basically make money by lending money at rates higher than the cost of the money they lend. More specifically, banks collect interest on loans and interest payments from the debt securities they own, and pay interest on deposits, CDs, and short-term borrowings.
http://www.investopedia.com/university/banking-system/banking-system3.asp

Answer 3

so which one do u think it is ^_^

Answer 4

Wait never mind, sorry! (wrong question that one is A i believe) This is the questions i would like help with...
“Interest rates are down to the lowest they have been in ten years! Hurry by and get the loan you have been wanting! You can buy that car! Build the addition! Go on an amazing vacation! These rates won’t last long!”–Newspaper ad
What does this advertisement tell you about the current economy?
Banks lowered the interest rates they charge for loans. The money supply will decrease, leading to fewer sales for many businesses.
Banks lowered interest rates to decrease the money supply. People will get fewer loans and purchase more products and services.
Banks lowered the interest rates they charge for loans. The money supply will increase, leading to more sales for many businesses.
Banks lowered interest rates to increase the money supply. People will get more loans and purchase fewer products and services.
~
How can lower interest rates be both good and bad for American workers?
Low interest rates mean the rate of economic growth is slowing down. Because there will be fewer jobs, businesses can afford to pay their employees more.
Lower rates mean that banks will make fewer loans and rely on the stock market for profit. Fewer business loans will lead to fewer new jobs, but a more active stock market means that current jobs are secure.
Lower rates allow businesses to expand through loans, generally hire more workers. Lower rates can also lead to inflation, meaning that workers’ wages will buy fewer goods and services over time.
Low interest rates mean the rate of economic growth is speeding up and more jobs will be offered. Because more people are unemployed, businesses can pay employees even less.

Answer 5

that one was B, the first one u asked

Answer 6

ur overflowing me lol one at a time, separate posts please!

Answer 7

are you sure i don't think so

Answer 8

well in the paragraph i sent u, it says the collect from interest right?

Answer 9

anyways thanks so much ur the best! @ILovePuppiesLol do you want me to post the questions up there^ in a different space?

Answer 10

yup yup! in a different post, close this one!

Answer 11

ok :)