Home › Chartered Banker Uganda › Banking › Money and Banking › A bank turns deposits into loans instead of mere…
A bank turns deposits into loans instead of merely storing them. In doing so it acts as an intermediary between savers and:
ABuilders
BBrokers
CBuyers
DBorrowers
Answer & Solution
Correct answer: D. Borrowers
1. Loans go out to them.
2. Deposits come from the other side.
3. They are borrowers.
_Source: OpenStax Principles of Economics 3e, Chapter 27, Money and Banking._
Related questions
The central bank of the United States, which regulates banks and runs monetary policy, is Across a whole banking system, the amount of money that can be created is worked out with When banks hold only the minimum reserves required, or barely more, the situation is calleIn a mortgaged house, the home itself is the asset, while the mortgage is the:Subtracting what is owed from the value of the assets gives the:On that layout, liabilities are shown on the right and assets on the:Because of its two-column shape, that statement is often nicknamed a:An accounting tool listing what a bank owns against what it owes is a: