Question and answer
What is the primary function of banks in the macro economy? How do banks facilitate the circular flow?
The primary function of banks is to put their account holders' money to use by lending it out to others who can then use it to buy homes, businesses, send kids to college... Banks create money in the economy by making loans.
Get an answer
Original conversation
User: What is the primary function of banks in the macro economy? How do banks facilitate the circular flow?





Weegy: In economics, the terms circular flow of income or circular flow refer to a simple economic model which describes the reciprocal circulation of income between producers and consumers.[1][2] In the circular flow model, [ the inter-dependent entities of producer and consumer are referred to as "firms" and "households" respectively and provide each other with factors in order to facilitate the flow of income.[1] Firms provide consumers with goods and services in exchange for consumer expenditure and "factors of production" from households. More complete and realistic circular flow models are more complex. They would explicitly include the roles of government and financial markets, along with imports and exports ]
Expert answered|denice|Points 40|



Question
Asked 1/2/2013 2:23:42 PM
Updated 1/3/2013 11:15:20 AM
1 Answer/Comment
This conversation has been flagged as incorrect.
Flagged by debnjerry
New answers
Rating
3
The primary function of banks is to put their account holders' money to use by lending it out to others who can then use it to buy homes, businesses, send kids to college... Banks create money in the economy by making loans.
Added 1/3/2013 11:15:20 AM
This answer has been added to the Weegy Knowledgebase
Comments

There are no comments.

Add an answer or comment
Log in or sign up first.
Questions asked by the same visitor
What is the primary function of banks in the macro economy? How do banks facilitate the circular flow?
Weegy: The banks primary function in the marco economy, is to circulate the money, and gain interest. Banks facilitate the circular flow by adding interest to the money, to gain the banks money. User: Thank you....any other thoughts to add (More)
Question
Expert Answered
Asked 1/2/2013 2:27:57 PM
0 Answers/Comments
21,760,874 questions answered
Popular Conversations
5. What is the correct order of the four steps of the writing ...
Weegy: A. revise. User: 6. The past tense of the verb drive is A. drove. B. droved. C. drived. D. driven.
7/31/2015 6:30:58 AM| 3 Answers
Mammals first appeared during the ______. a. Cenozoic ...
Weegy: Mammals first appeared during the TRIASSIC PERIOD.
7/30/2015 8:10:19 AM| 2 Answers
What is an example of adding energy to a substance and causing a ...
Weegy: A. heating a rock to make it hot User: A color change happens during an experiment mixing two liquids. Is ...
7/30/2015 12:32:38 PM| 2 Answers
Constantine was the first Christian ruler of Rome.
Weegy: CONSTANTINE was the first Christian ruler of Rome. User: A stele is an upright stone slab that is ...
7/30/2015 2:55:13 PM| 2 Answers
Write -2x 2(-5x 2 +4x 3) in standard form.
7/30/2015 3:10:48 PM| 2 Answers
Which of the following statements is true? Both photosynthesis ...
Weegy: Photosynthesis and cellular respiration are the two main processes performed by most living organisms to obtain ...
7/30/2015 4:56:50 PM| 2 Answers
4. Which one of the following word or words is an example of a ...
Weegy: A. Because User: 5. What is the simple subject of the following sentence? During the night, the frightened ...
7/30/2015 8:42:51 PM| 2 Answers
Weegy Stuff
S
1
L
Points 868 [Total 1379]| Ratings 1| Comments 858| Invitations 0|Offline
S
P
C
L
P
L
1
P
P
1
P
1
P
L
Points 784 [Total 10318]| Ratings 3| Comments 734| Invitations 2|Offline
S
L
L
Points 348 [Total 8548]| Ratings 5| Comments 298| Invitations 0|Offline
S
Points 296 [Total 296]| Ratings 1| Comments 286| Invitations 0|Offline
S
Points 201 [Total 201]| Ratings 1| Comments 191| Invitations 0|Online
S
1
L
L
Points 83 [Total 8463]| Ratings 0| Comments 83| Invitations 0|Offline
S
Points 77 [Total 77]| Ratings 0| Comments 77| Invitations 0|Offline
S
Points 50 [Total 50]| Ratings 3| Comments 20| Invitations 0|Offline
S
Points 41 [Total 41]| Ratings 2| Comments 21| Invitations 0|Offline
S
Points 19 [Total 319]| Ratings 0| Comments 19| Invitations 0|Offline
Home | Contact | Blog | About | Terms | Privacy | Social | ©2015 Purple Inc.