Business, 14.07.2019 18:30 Kianna000

Where do banks get money to lend to borrowers? the bank’s management shareholders the government depositors

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The answer is D depositors,

A depositor (you) places money in a banks vault, then the bank putts interest on it, and can use it if it needs to. As long as a certain amount of it stays in the bank in case you want to come and withdraw.

Answer from: jjtfeb11

The option D is correct.

Banks get money to lend to borrowers from the depositors.

Further Explanation:

The main purpose of the bank to provide the loan to the customer and savings facility to the customer. The bank is the intermediary among the customer who has excess cash and the person who needs the cash. The banks provide the money to the lender from the cash deposited by the customer. The customer who deposited the cash in the bank is known as a depositor.

Justification for the correct and incorrect

The bank’s management: This option is incorrect.

As the bank’s management does the function of managing the bank. It does not provide the money to the bank. So, this option is incorrect.

Shareholders: This option is incorrect.

Shareholders are the person who invested the money in the name of the bank company for a particular purpose. The money invested by shareholders can not be used to provide the loan to the lender. So, this option is incorrect.

Government: This option is incorrect.

The government does not provide any type of financial help to provide the loan to the lender. So, this option is incorrect.

Depositors: This option is correct.

The banks provide the loan to the lender by using the savings of the depositor. So, this option is correct.

Learn more:

1.Learn more about federal reserve bank

2.Learn more about recording bank account

3.Learn more about national retails bank

Answer details:

Grade: Middle School

Subject: Banking

Chapter: Borrowing

Keywords:

bank, lend, borrowers, customer, depositor, bank’s management, government, shareholders, savings, invested, money, managing, borrowing.

Answer from: Quest

answer; sensory adaptation;

Answer from: Quest

answerinnovative culture;

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