Answered: make many small loans. d. Through the…

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Economics

make many small loans. d. Through the checking accounts they facilitate, banks

Economics Today and Tomorrow, Student Edition

1st Edition

ISBN:9780078747663

Author:McGraw-Hill

Publisher:McGraw-Hill

Chapter6: Saving And Investing

Section: Chapter Questions

Problem 12AA

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Question

Which of the following is true about banks?

Select one:

a. The interest rate banks charge when they lend is the same they pay for the deposits they receive.

b. Banks are financial institutions through which savers can directly provide funds to borrowers.

c. Typically, banks receive few but big deposits, which they then use to make many small loans.

d. Through the checking accounts they facilitate, banks provide a medium of exchange.

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