BANKING AFFAIRS

Detailed explanation-1: -Answer: An increase in money supply increases the supply for loanable funds and therefore can place downward pressure on interest rates. Yet, it can also cause inflationary expectations, resulting in an increased demand for loanable funds and upward pressure on interest rates.

Detailed explanation-2: -Yes, you can have a credit card against savings accounts. Banks offering secured credit cards require you to make a security deposit in a collateral account, which is generally a savings account. Secured credit cards require a cash collateral deposit which becomes the line of credit for that account.

Detailed explanation-3: -Does Opening a Savings Account Affect Your Credit? Opening a savings account typically won’t affect your credit score because savings accounts don’t report to credit bureaus. Most banks will pull your ChexSystems report to verify your identity and banking history when you apply for a new account with the bank.

Detailed explanation-4: -Interest rates, fees and minimum balance requirements are all critical things to look at when comparing accounts. Additionally, it’s crucial to find an account that aligns with your financial goals. Whether you’re looking for a high-interest rate or low fees, there’s an account out there that’s right for you.