In an essay of at least two well-developed paragraphs, explain how making regular deposits in a savings account or buying shares of stock or bonds makes an impact on our economy.

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Briana Mercado

Business

9 March, 05:55

In an essay of at least two well-developed paragraphs, explain how making regular deposits in a savings account or buying shares of stock or bonds makes an impact on our economy.

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Gilbert Estes · Answer 1

When you deposit your money to the bank, you are giving the bank the cash that they need to lend to borrowers or the cash they can invest in other form of investment like bonds and stocks.

The banks will earn interest from these loans and investments while the depositor will earn from the interest that the bank will pay you.

Money deposited in the bank that is loaned to other people will most likely be used to put up businesses or expand businesses. With the increase of businesses in the community, a lot of people will be hired and their salaries and wages will be used to augment their basic needs. Needs that they will buy from their local stores. Thus, continuing the cycle of the economy.