Apr 28, 2009 18:33
15 yrs ago
English term

Commercial Banks as an Impetus to the Real Sector of An Economy

Non-PRO English Bus/Financial Finance (general) commercial Banking
how do commercial banks boost the real sector economy through buying of bonds from the companies and lending to them?

Responses

11 hrs
Selected

commercial banks play a boosting/encouraging/important/active... role to the real sector economy

The real-sector-economy is basically production of both agricultuiral and industrial goods, their exchange/marketing, other essential services like education, health, etc., as well as research, art, philosophy, etc., that satisfy various needs of human beings.
Banks are an institution that collects money from the clients to serve their need of safeguarding that for them, and provides there-with the finance for the real-sector-economy.
Impetus implies that Banks play the role of spuring people/institutions/industries/etc. to operate/perform/produce/exchange/etc. the goods or services or other things of the real-sector-economy.
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