Glenn and Maggie own a regional chain of juice bars and are looking to expand in the coming year. They already have fifty shops,

Question

2 years ago

7

Glenn and Maggie own a regional chain of juice bars and are looking to expand in the coming year. They already have fifty shops,

but they know they will need a loan to reach their goal of one hundred twenty five shops. Which type of banking institution is most suitable for Glenn and Maggie’s business?
a credit union
a savings and loan
a commercial bank
an investment bank

Business

2 answers:

Finger [1] · Answer 1 · 2022-10-23T15:23:57+03:00

Finger [1]2 years ago

6 0

Answer:

a commercial bank

Explanation:

Studentka2010 [4] · Answer 2 · 2022-10-23T13:28:06+03:00

Answer:

a commercial bank

Explanation:

A commercial bank is a deposit accepting institutions regulated by the central bank of a country. The banks play a crucial role in availing capital to businesses. They accept deposits in the form of savings from customers. They keep a small fraction(reserves) in their custody to cater for withdrawal and loan out the rest. Banks, therefore, pool resources together for businesses and households to borrow.

Since banks have a wide customer base, they are able to mobilize huge amounts of resources to loan out. Commercial banks are the best institution to issue a loan to Glenn and Maggie. Saving and loan, credit unions have a limited membership and may not have sufficient resources to issue a loan to Glenn and Maggie.