Question

why bank give credit to peoples

explain in points​

Answer 1

Answer:

Banks typically offer credit to borrowers who have adverse credit histories with terms that benefit the banks themselves—higher interest rates, lower credit lines, and more restrictive terms.

Answer 2

ADVANTAGES

• Globalization has raised household income

Globalization helped to reduce high inflation rates in Western economies, giving consumers more “bang for the buck”.

• Globalization has increased real wages by lowering the cost of consumption.

DISADVANTAGES

• Unequal economic growth. ...
• Lack of local businesses. ...
• Increases potential global recessions. ...
• Exploits cheaper labor markets. ...
• Causes job displacement.

Banks and financial institutions make money from the funds they lend out to their clients. ... In return for using their services, banks pay clients a small amount of interest on their deposits. As noted, this money is then lent out to others and is known as bank credit.