In what way do banks drive the United States economy?

Group of answer choices

They provide loans that allow families and businesses to invest for the future.

Their success or failure affects the availability of money.

They set interest rates and payment policies.

They determine who can invest in businesses.

Question

Sebastian Huang

Business

3 July, 00:54

In what way do banks drive the United States economy?

Group of answer choices

They provide loans that allow families and businesses to invest for the future.

Their success or failure affects the availability of money.

They set interest rates and payment policies.

They determine who can invest in businesses.

+2

Answers (1)

Know the Answer?

Brogan Humphrey · Answer 1

They provide loans that allow families and businesses to invest for the future.

Explanation:

The banking system plays a significant role in the economic development of a country. Banks collect savings from the general public and lends them to firms and business people. Issuing out loans facilitates individuals and businesses to acquire funds for either business or personal development.

Bank facilitates commercial activities in the economy. They offer financial services to other institutions, including manufacturers and individuals. They avail capital to producers, thereby enabling the creation of goods and services in the economy. They finance assets acquisition making it possible for individuals and firms to do business.