Role Of Banks Flashcards
(7 cards)
1
Q
How people pay interest?
A
On the money that they borrow?
2
Q
What is usually a boost to the economy of the country?
A
When people borrow money to from a bank to make capital in vestment
3
Q
When a capital investment is made why is it a boost to the economy? (3)
A
- It creates more work opportunities
- It promotes the country’s economic growth
- It stimulates the country’s needs and wants
4
Q
International trade plays a big role in_____ ______.
A
Economic growth
5
Q
What happens when two countries trade with each other?
A
Banks give surety that the money involved will be transferred from one country to another.
6
Q
What does surety mean?
A
When a person or organization promises to pay debt if the person or organization who is supposed to be paying fails to do so.
7
Q
How do individuals earn interest?
A
On money that they save
