Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

To think about losing faith in the bank is a scary thought because I work for one. The first thought was that I would be

To think about losing faith in the bank is a scary thought because I work for one. The first thought was that I would be at risk of losing my job along with others, causing unemployment to rise and destabilizing the economy. Banks often invest in outside ventures that give back to communities and these would stop causing impoverished areas to go deeper into despair. Banks often take the money stored in savings to create loans for businesses. This would not be possible if people did not trust the bank, businesses would not be able to get a loan and may shut down. This causes further unemployment, less money being spent on goods and services, decreasing the money supply, and creating a recession. Thinking from a more individual household perspective, people would not be able to rely on banks to offer loans for vehicles or mortgages. Decreasing the housing market and automobile industry and once again lowering our economy's strength. Lastly, I feel the power of the US dollar would drop because there is much less global trade happening because there is no pass-through bank to act as an intermediary between the government and foreign trade markets

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Leading and Collaborating in the Competitive World

Authors: Thomas S Bateman, Scott A Snell, Robert Konopaske

13th edition

1259927644, 1259927645, 978-1260194241

More Books

Students also viewed these Economics questions

Question

5. How can I help others in the network achieve their goals?

Answered: 1 week ago