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
17,082,640 questions answered
Popular Conversations
How many protons does silicon have?
Weegy: A neutron is a subatomic particle contained in the atomic nucleus that has no net electric charge. User: ...
8/18/2014 9:49:28 AM| 2 Answers
A triangle has sides of lengths 27, 79, and 84. Is it a right ...
Weegy: a right triangle has 94 sides.
8/18/2014 1:33:15 PM| 2 Answers
Every square is a rhombus. True False
Weegy: TRUE. Every square is a rhombus.
8/18/2014 3:49:32 PM| 2 Answers
2. A villanelle is A. a narrative poem written in blank verse. B. ...
Weegy: A villanelle is a nineteen-line poetic form consisting of five tercets followed by a quatrain. User: 1. ...
8/18/2014 3:58:15 PM| 2 Answers
How much does an elephant weigh?
Weegy: Elephants can weigh up to 7,000 kilograms.
8/18/2014 4:23:16 PM| 2 Answers
"Should I apply for a job or go for an internship " is an example of ...
Weegy: The answer is Defining a problem. User: When looking at the pros and cons of a problem, you are in the process ...
8/18/2014 5:02:23 PM| 2 Answers
In which of the following sentences is the underlined word a past ...
Weegy: The answer is: D. We helped Joan to pack her things.. User: Which of the following sentences contains a verb ...
8/18/2014 6:32:20 PM| 2 Answers
Weegy Stuff
S
R
L
1
1
P
C
1
P
1
1
L
P
C
P
C
1
P
C
L
P
C
1
P
C
P
C
Points 1682 [Total 23282]| Ratings 2| Comments 1662| Invitations 0|Offline
S
L
1
L
Points 1316 [Total 5292]| Ratings 5| Comments 1266| Invitations 0|Offline
S
L
C
P
C
1
L
L
Points 1169 [Total 14783]| Ratings 7| Comments 1099| Invitations 0|Online
S
L
1
1
1
1
L
1
Points 1119 [Total 8826]| Ratings 2| Comments 1099| Invitations 0|Offline
S
L
P
C
L
P
C
P
C
L
P
C
P
C
P
C
Points 1000 [Total 16027]| Ratings 2| Comments 980| Invitations 0|Offline
S
L
P
C
P
C
1
L
P
C
L
P
C
P
C
P
C
P
C
Points 812 [Total 18383]| Ratings 0| Comments 812| Invitations 0|Offline
S
1
L
Points 374 [Total 4938]| Ratings 0| Comments 374| Invitations 0|Offline
S
1
L
1
L
P
P
L
Points 334 [Total 10995]| Ratings 1| Comments 324| Invitations 0|Offline
S
Points 221 [Total 221]| Ratings 1| Comments 201| Invitations 1|Offline
S
Points 217 [Total 228]| Ratings 3| Comments 157| Invitations 3|Offline
Home | Contact | Blog | About | Terms | Privacy | Social | ©2014 Purple Inc.