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Capitalism would become impossible.

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11y ago
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Q: How might the economy suffer if there were no banks?
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Why do government regulate from banks?

Because banks are the financial intermediaries of the economy. If banks operate in an unsupervised manner they might cause economic chaos and uncertainty in the country. That is why governments regulate the banks to ensure that customers are protected and the country's economy is safeguarded.


Why does government regulate banks?

Because banks are the financial intermediaries of the economy. If banks operate in an unsupervised manner they might cause economic chaos and uncertainty in the country. That is why governments regulate the banks to ensure that customers are protected and the country's economy is safeguarded.


Why do governments regulate banks?

Because banks are the financial intermediaries of the economy. If banks operate in an unsupervised manner they might cause economic chaos and uncertainty in the country. That is why governments regulate the banks to ensure that customers are protected and the country's economy is safeguarded.


Why do you have a federation?

Because banks are the financial intermediaries of the economy. If banks operate in an unsupervised manner they might cause economic chaos and uncertainty in the country. That is why the Federal Reserve regulates the banks to ensure that customers are protected and the country's economy is safeguarded.


One sign that the economy might be weakening in the 1920s was?

One sign that the US economy might be weakening in the 1920's was the failure of the area banks. Along with the banks failures there was an underproduction of goods due to lack of money.


Why do you have a federal reserve?

Because banks are the financial intermediaries of the economy. If banks operate in an unsupervised manner they might cause economic chaos and uncertainty in the country. That is why the Federal Reserve regulates the banks to ensure that customers are protected and the country's economy is safeguarded.


What are the Importants of banks in the economy?

the importants of banks is that if banks dont lend to business and other banks to whole economy starts collapse


What are the aim of banking supervision?

Banks are the financial intermediaries of the economy. If banks operate in an unsupervised manner they might cause economic chaos and uncertainty in the country. The Governments cant just let the banks do whatever they wish. That is why governments regulate the banks to ensure that customers are protected and the country's economy is safeguarded.


How does the economy affect banks?

Commercial banks - NO. National banks - YES.


How banks help expand and maintain the economy?

Banks help expand and maintain the economy by providing loans and credit to businesses.


What happens if banks reduce lending?

It hurts the economy and makes banks lend less which would hurt the economy even more and so on...


What happens if the economy fails?

If economy fails the worst suffer would be citizens, there would be war situation within that economy.