What are tha negative and positive impact of financial constitutions in a business?
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One of the ways that financial institutions affect business and households are interest rates. With high interest rates money is expensive, and the bank do not want to loan money to everyone. ... On the other hand, with low interest rate money is cheap so banks will lend the money to whoever is qualified to get a loan.
They provide both owned capital and loan capital for long and medium-term and supplement the traditional financial agencies like commercial banks. Financial institutions give technical assistance and managerial services to organisations. These institutions give large funds for a longer duration.
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