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Discipline: Economics

Question topic: Financial Sector: Introduction

Source: Originais Teachy

Level of difficulty: Medium

(Originais Teachy 2023) - Question Medium of Economics

In a small town, a private bank has recently been established. This bank offers a variety of services, including loans, savings accounts, and investment programs. If this bank wants to stimulate economic growth in the town, what actions could it take based on the roles and functions of financial institutions in the economy?
a.
The bank can stimulate economic growth in the town by offering loans, savings accounts, and investment programs, educating the community about financial management, and participating in community development programs.
b.
The bank can stimulate economic growth by increasing the fees for its services, reducing the number of loans it offers, and limiting the number of savings accounts.
c.
The bank can stimulate economic growth by closing down its investment programs, focusing solely on savings accounts, and not participating in community development programs.
d.
The bank can stimulate economic growth by offering loans with high interest rates, discouraging savings, and not offering any financial education to the community.
e.
The bank can stimulate economic growth by not offering any loans, discouraging savings, and not participating in any community development programs.

Answer:

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Financial Sector: Introduction
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