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Economics glossary · Policy and the financial sector

Loans

What loans means in economics, as one of what sits on a bank's balance sheet, with an example and a question to test yourself.

Definition
Loans
Loans are money lent to households and firms, who must repay it with interest over months or years.
Example

Can you think of an example of loans?

Test yourself

Can you name the four items, besides capital, on a simple bank balance sheet?

Learn it properly: the module

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