Question

Where do banks get money to lend to borrowers?

Answer 1

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:

A.

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.  

B.

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.  

C.

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.  

D.

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

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2. Learn more about recording bank account

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3. Learn more about national retails bank  

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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.

Answer 2

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.