Bank Credit
Bank credit can be viewed from both a macro and micro level. On the macro level, bank credit is the total borrowing capacity a bank can provide to borrowers. On the micro level, bank credit is the agreement between the bank and its individual borrowers under which they borrow and repay funds plus interest for loans, credit cards or lines of credit.
The sum of the micro level activities approximates the macro level version of bank credit (how much the bank could lend at a maximum). However, the whole is greater than the sum of its parts. In other words, the impact of the individual loans is greater than the whole loan pool. Multiplier effect, among many other liquidity-driving things at work.
And yes, banks beats the old days when everything was cash and carry.
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Finance: What is a Routing Number?20 Views
finance a la shmoop what is a routing number of a routing number is so that
wired monies can you know like find their way home yeah think of them like [maze game]
the smell of worm to Canadian geese when you write a check or wire money or do [worms and Canadian geese]
almost anything financial these days the dough is given a kind of custom [card getting swiped]
electronic signature and basically a number a big fat one like this one yeah
and the numbers mean specific things like on a paper check the routing of the
dough you're paying to Lana sim for um you know services rendered comes in two [breakdown of a check]
pieces there's a nine digit routing number aka our TN aka routing transit
number which is here and that number is then mapped to your specific account
number which is here why did you need this number why do you need it at all
well when you suddenly see an item on your bank statement for a payment of [bank statement document]
$350 to Yamaka supply limited and you're about as Jewish as the Pope well you may [Pope Francis in the Vatican]
want your bank to be able to track that sucker down because it was fraud on your
account I'd like to be able to prove that you were not in fact the one who
authorized that payment so your bank can refund you you know your hard-earned
cash all right there we go much better yeah I am
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