Construct an example of the cycle of money, identity all the players involved and identify their individual benefits from participating in the cycle of money. In the examples of the cycle of money shown below, identify all the players involved and identify their individual benefits from participating in the cycle of money. Example 1:
opens a savings accountwith a $200 deposit. Theloans out the $200 with other funds from other savings accounts towho is expanding his business. The local businessman pays back the loan over time with interest and the bank credits the savings account with interest. The individual withdraws money from the savings account to buy a new bike.
In this example of the cycle of money, the benefit for the lender is:.
a. the interest earned on the savings deposit can be used to buy a consumer good.
b. the interest earned on the savings deposit can be used to buy a consumer good.
c. the interest earned on the savings deposit can be used to recoup the savings deposit.
d. the ability to make enough money to pay back the loan.