Wednesday, October 10, 2007


Banks serve a tremendous purpose in this world. They take in individual's deposits and pool them together to lend them to businesses or individuals who need the capital for a business opportunity they have. This business opportunity could be a company that wants to expand or an individual who wants to buy a home. The more that people save, the more money that is in the banking system and this increased money leads to more loans and more economic growth. This growth is natural and healthy because people's savings represent capital they could use in the future for more purchases. Thus, when a business borrows more money and invests that capital to be able to manufacture more goods it is a smart decision because people already have more money saved to spend on these goo View the rest of this article

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