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Order how a bank turns deposits into loans

Exercise and reference answers

Steps
  1. People deposit their savings
  2. The bank keeps some as cash
  3. The rest is lent to borrowers
  4. Borrowers pledge collateral
  5. Interest is repaid to the bank
Instructions
Tap the steps in the order they happen.

Explanation

_Source: syllabus Social Science, 'Understanding Economic Development', Ch 3 'Money and Credit'_
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