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
25,337,616 questions answered
Popular Conversations
What kind of money is a gold certificate considered to be? A. ...
Weegy: Silver certificates, along with gold certificates, represent a transition between commodity money and fiat ...
5/25/2016 7:59:59 AM| 3 Answers
Evaluate. 7^0
Weegy: 0! + 1! = 2 1 + 1 = 2 User: Evaluate. 3^-2 User: Evaluate. 5^-3
5/25/2016 5:38:45 PM| 3 Answers
What was the first armed conflict of the Cold War? A. the Korean ...
Weegy: The Korean war was the first armed conflict of the Cold War. User: Which of the following was NOT a ...
5/25/2016 6:38:57 AM| 2 Answers
Weegy Stuff
S
Points 639 [Total 639] Ratings 12 Comments 519 Invitations 0 Offline
S
Points 631 [Total 631] Ratings 9 Comments 521 Invitations 2 Offline
S
Points 568 [Total 568] Ratings 0 Comments 568 Invitations 0 Offline
S
1
L
L
P
R
P
L
P
P
R
Points 285 [Total 12537] Ratings 2 Comments 265 Invitations 0 Offline
S
L
P
P
P
Points 166 [Total 3543] Ratings 0 Comments 166 Invitations 0 Offline
S
Points 38 [Total 107] Ratings 0 Comments 38 Invitations 0 Offline
S
Points 12 [Total 12] Ratings 1 Comments 2 Invitations 0 Offline
S
Points 10 [Total 10] Ratings 1 Comments 0 Invitations 0 Offline
S
Points 4 [Total 4] Ratings 0 Comments 4 Invitations 0 Offline
S
L
Points 2 [Total 1756] Ratings 0 Comments 2 Invitations 0 Offline
* Excludes moderators and previous
winners (Include)
Home | Contact | Blog | About | Terms | Privacy | © Purple Inc.