All categories

3 years ago

Where do banks get money to lend to borrowers?

Business

2 answers:

Korolek [52]3 years ago

7 0

The option D is correct.

Banks get money to lend to borrowers from the depositors.

Further Explanation:

The bank provides the money to the borrowers and deposits the money from the savers. The people save their excess money in the bank to earn the interest on the deposit money. The borrowers get the money from the bank and pay interest on the borrowing amount.

Depositors are those people who saves their money in the bank. Borrowers are those people who takes loan from the bank.

Justification for the correct and incorrect answer:

The bank’s management: This option is incorrect.

The bank’s management is the process involved in managing the bank. The management takes decision whether to give the loan to the person or not, how much amount of loan is to be extent. So, this option is incorrect.

Shareholders: This option is incorrect.

Shareholders are the owner of the bank, they provide finance to the bank for expanding the business. The amount of shareholder money cannot be used to provide loan. This option is not correct.

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.

Depositors are those people who saves their money in the bank. This money is utilized for providing the loan to the borrower. So, this option is correct.

Learn more:

1. Learn more about federal reserve bank

brainly.com/question/9417688

2. Learn more about recording bank account

brainly.com/question/3212764

3. Learn more about national retails bank

brainly.com/question/7706363

Answer details:

Grade: Middle School

Subject: Banking

Chapter: Borrowing

Keywords:

bank, lend, borrowers, customer, depositor, bank’s management, government, shareholders, excess money, interest rate, money, managing, owner, expanding the business, finance, borrowing.

Marysya12 [62]3 years ago

5 0

The answer is "depositors".

An individual who is making a deposit with the bank is known as a depositor. The depositor is the moneylender of the cash which will be come back to him/her toward the finish of the store time frame.

A depositor (you) places cash in a banks vault, at that point the bank putts enthusiasm on it, and can utilize it in the event that it needs to. Up to a specific measure of it remains in the bank on the off chance that you need to come and withdraw.

You might be interested in

If a loan is risky and extends for more than a year what will a lender ask for

Alenkasestr [34]

Answer:

A higher interest rate for sure.

Explanation:

They will charge you more for the money you are borrowing (loan). So you may pay 25% over the, for example, $1000 you're borrowing.

7 0

3 years ago

Find the present worth in year 0 of $60,000 in year 3 and amounts increasing by 15% per year through year 10 at an interest rate

Kamila [148]

Answer:

Present worth is 398,577

Explanation:

First we need to grow the payment by 15% each year after year 4. Then we need to discount the amounts using the interest rate of 11% each year.

All the workings are done in the pdf file attached with this answer, please find it.

Download pdf

5 0

3 years ago

Medium:

Sever21 [200]

Answer: 335000

Explanation:

The company's cost of goods available for sale will be calculated as the addition of the begining inventory, the net purchases and the freight. This will be:

= Beginning inventory + Purchases + Freight

= 250000 + 70000 + 15000

= 335000

4 0

2 years ago

An individual or company purchaser that sees the benefits-to-status-quo ratio of a new product or service better than the averag

slamgirl [31]

The answer is Early Adopter.

The term "early adopter" refers to an individual or business who uses a new product, innovation, or technology before others.

In other words, an early adopter is an individual who almost always buys new products in a given product category.

Early adopters, therefore, form a category of consumers particularly favorable to the adoption of new products or new technologies.

As part of targeted marketing actions, they can play a driving role in the launch and adoption of a new product, service, or online offer.

For instance, Early adopters are often the first market for a high-tech product in the launch phase.

Hence, An individual or company purchaser that sees the benefits-to-status-quo ratio of a new product or service better than the average customer is an Early adopter.

Learn more about Consumers:

brainly.com/question/380037

#SPJ4

8 0

1 year ago

Evan McWilliams was involved in a two-car accident with Francis Sullivan. It was Evan's fault and Francis was seriously injured

Furkat [3]

Answer:

Bodily Injury Liability

Explanation:

Since the accident that left Francis seriously injured was Evan's fault, the automobile Insurance policy that will cover the cost of Francis's treatment would be Bodily Injury Insurance Policy.

When a user of this Insurance policy cause a car accident that injures another person, bodily injury liability coverage helps pay for the medical expenses of the person or persons injured.

One should carry a bodily-injury coverage of at least $100,000 per person, and $300,000 per accident, and property-damage coverage of $50,000, or a minimum of $300,000 on a single-limit policy.

This goes to define Bodily injury liability as a car insurance coverage that pays for injuries a driver causes to other people, including other drivers, passengers and pedestrians. This policy covers or takes care of medical expenses and lost wages as well as legal and funeral expenses in some cases of the injured persons.

6 0

3 years ago