The effect of bank credits is exactly that of an excessive issue of notes; that is, if they are expanded more rapidly than the actual volume of business there is a rise in prices, that is to say there is inflation.
One of the ways in which inflation was caused in the United States during the war period was the plan adopted by the banks of financing the loan directly by means of bank credits to the buyers.
Upon deposits of the coin current in the country, the bank grant receipts likewise, as well as bank credits; but those receipts are frequently of no value and will bring no price in the market.
The owners of bank credits, and the holders of receipts, constitute two different sorts of creditors against the bank.
In the event that this fund is inadequate to cover legitimate wage requirements, the farms may draw upon two other obligatory funds or resort to bank credits.
This extension is effected largely by the lending of bank credits, that is, by the increasing of deposit currency.
In the United States there is no way of regulating the supply of bank credits and of holding part of the potential supply in reserve for periods of financial stringency.
The above list will hopefully provide you with a few useful examples demonstrating the appropriate usage of "bank credits" in a variety of sentences. We hope that you will now be able to make sentences using this group of words.
