T/F the money multiplier process also works in reverse when a loan is repaid and the amount of money that is destroyed is equal to the loan repayment times the money multiplier.

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16-12-2022
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T/F the money multiplier process also works in reverse when a loan is repaid and the amount of money that is destroyed is equal to the loan repayment times the money multiplier.

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Bhupendarkumar Bhupendarkumar · Answer 1 · 2022-12-20T05:35:52+01:00

When a loan is repaid, the money multiplier mechanism also acts in reverse, resulting in the destruction of an amount of money equal to the loan payback multiplied by the true value of the money multiplier.

What does term of repayment mean?

The time frame from the first point on credit to the transaction's eventual maturity is referred to as the "repayment term." The accomplishment of the exporter's obligation under the export contract is often the starting point of credit ..

What loan repayment means?

Repaying a loan involves paying back the money you received from a lender plus any relevant interest. The repayment plan often consists of a set process (referred to as a loan payback schedule) inside the form of equivalent monthly instalments, or EMIs.

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