Question

In: Economics

Explain in your own words why banks exist (again you cannot paraphrase). Be as specific as...

Explain in your own words why banks exist (again you cannot paraphrase). Be as specific as you can. Think about what problems they solve.

Solutions

Expert Solution

To act as an intermediary between depositors and borrowers basically - but there are changes to the normal banks therein nowadays banks provide a lot of latest functions to its customers apart from loans and deposit holdings. Savings accounts, mortgages, financial market investments etc. Banks exist primarily to supply a secure place to store wealth held within the sort of readily available money.

As a result of various activities - without which the bank would not make any money - banks are considered vital to economic development through their prudent investment of portions of the wealth stored in them. Banks also are considered integral to varied other functions associated with the management of the nation's funds and systems of credit.

However, no matter what banks now do, they exist first and foremost as a secure place to store wealth held within the sort of readily available money. If a bank can't do that, it quickly loses credibility as a bank.

Please rate my answer.


Related Solutions

In your own words (you cannot paraphrase), explain the adverse selection problem that car insurance companies...
In your own words (you cannot paraphrase), explain the adverse selection problem that car insurance companies face and how they deal with it. Finally, in few words explain whether insurance companies should only insure safe drivers.
Explain in your own words as to why economic inequalities exist in societies? Which theorist's model...
Explain in your own words as to why economic inequalities exist in societies? Which theorist's model fits your viewpoint the best and why? Please elaborate on your analysis by giving examples
can You please paraphrase the below paragraph and write it according to Your own words and...
can You please paraphrase the below paragraph and write it according to Your own words and in a very simple way. Also, i want You to add more information in it and relate it do the dental hyegen the below theory is about Reasoned Action The attitudes are based upon beliefs and evaluations. Hence these are person's own beliefs as said above. Let us take e.g. of improving health hence person's own knowledge of nutrition, risk factors, his belief on...
Describe and explain the following list of reception/office administration duties in your own words( paraphrase) and...
Describe and explain the following list of reception/office administration duties in your own words( paraphrase) and give ONE example for each: 1) Client management 2) Appointment book control 3) Continuing care system 4) Records management 5) Answering the telephone 6) Dealing with client concerns 7) Banking 8) Payroll 9) Staff coordination 10) Marketing
Explain using your own words how you could find the specific heat of a liquid. Be...
Explain using your own words how you could find the specific heat of a liquid. Be detailed. Your response should be in the format of a lab investigation that someone else could follow.
Paraphrase and write these two paragraphs in your own words. Progressivism was a movement starting at...
Paraphrase and write these two paragraphs in your own words. Progressivism was a movement starting at the end of the nineteenth century (1880) and ended in the second decade of the twentieth century (1920). In this era, tremendous changes at the economic, social, and political level were made. People taking part in the movement had diversified backgrounds, different political views, and varied social interests. It included political leaders from both Democrats and Republicans. The movement was led by people of...
a. Why is GPU important in a computer? Explain in your own words. b. If you...
a. Why is GPU important in a computer? Explain in your own words. b. If you are visiting the your college campus with the help of a head mounted display (HMD) that feels like you are at your campus physically where you are attending classes and roaming around with your friends.    i) What kind of technology can help getting you this kind of experience?    ii) Justify your answer with the technological aspects whether it used virtual or augmented reality?    iii)...
Explain the following in your own words (be specific): What is meant by a 95% confidence...
Explain the following in your own words (be specific): What is meant by a 95% confidence interval? What is meant by the true mean and how does it relate to the confidence interval? Explain Standard Error or Margin of error and how it helps define the confidence interval?
please properly paraphrase in your own words this paragraph ; Technological Innovation With refining the methods...
please properly paraphrase in your own words this paragraph ; Technological Innovation With refining the methods used of fossil fuel like coal or petroleum production to reduce and lessen the impact on climate , and biofuels, an important area of investigation and investment to be mentioned are new offshore wind parks (solar energy has been abandoned as a major R&D area in 2008). An offshore wind farm with a generation power of 108 MWh has been developed with energy provider...
QUESTION: Paraphrase this article into your own words. Article: Assessing the Allowance for Doubtful Accounts This...
QUESTION: Paraphrase this article into your own words. Article: Assessing the Allowance for Doubtful Accounts This article describes three techniques for assessing allowance for doubtful accounts estimates and complying with Statement on Auditing Standards (SAS) no. 57 and AU section 342, Auditing Accounting Estimates, which suggest auditors compare prior accounting estimates with subsequent results to evaluate the reliability of the process used to develop estimates. TECHNIQUES FOR ANALYZING THE ESTIMATE-GENERATING The techniques use historical data, they give an indication of...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT