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Answer to Question #63794 in Economics for melissa
Question #63794
What would happen if families and businesses were not able to save money in financial institutions? (3 things)
Expert's answer
If families and businesses will not be able to save money in financial institutions, this will:
- increase the cost of bank loans, which can stop development of small and medium business;
- increase the level of robberies (once it is evident that those funds will be stored physically at some places);
- prevent those families and business from receiving passive income in the form of interest.
- increase the cost of bank loans, which can stop development of small and medium business;
- increase the level of robberies (once it is evident that those funds will be stored physically at some places);
- prevent those families and business from receiving passive income in the form of interest.
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