What is a loan?
Q: What is a loan?
A: A loan is a type of debt that the borrower needs to repay the lender over time.
Q: How does a borrower clear their debt?
A: The borrower needs to repay the lender the sum of money loaned part by part over time in order to clear the debt.
Q: What is the main task of financial institutions?
A: Acting as a provider of loans is one of the main tasks for financial institutions.
Q: What is a main source of funding for some institutions?
A: For other institutions, issuing of debt contracts such as bonds is a main source of funding.
Q: Are bank loans and credit ways to increase the money supply?
A: Yes, bank loans and credit are one way to increase the money supply.
Q: What do financial institutions do?
A: Financial institutions act as a provider of loans.
Q: What is the borrower's responsibility when it comes to loans?
A: The borrower needs to repay the lender the sum of money loaned part by part over time in order to clear the debt.
