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Myth #1: If Banks do Properly, Canadians do Nicely, Right? It’s commonly believed that if a country’s banks are doing well, it means that there’s credit score available to lubricate the financial system, thereby ensuring a constant level of progress. This keeps unemployment low as a result of Canadians have entry to comparatively low cost credit score that can be utilized to spend and maintain the economic system growing. Banks supply credit score so that businesses can make investments more than the cash they have readily available, enable folks to purchase houses without saving your complete cost in advance, and allow governments to rely much less on tax revenue to clean out spending. This argument has been fed to the general public for quite some time with the belief that the relationship between financial institution efficiency and Canadian welfare is linear. That’s, the extra of one, the more of the other.
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