ECONOMICS
INFLATION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The account of the bank’s customers
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The bank’s own business checking account
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A credit card company
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The federal government
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Detailed explanation-1: -Banks and financial institutions make money from the funds they lend out to their clients. These funds come from the money clients deposit in their checking and savings accounts or invest in certain investment vehicles such as certificates of deposit (CDs).
Detailed explanation-2: -Lending starts with banks collecting deposits of real resources from savers and ends with the lending of those resources to borrowers.
Detailed explanation-3: -Once you’re approved for a personal loan, the cash is usually delivered directly to your checking account. If you’re getting a loan to refinance existing debt, you can sometimes request that your lender pay your bills directly.
Detailed explanation-4: -The interest–this is like paying rent on the money you borrow.
Detailed explanation-5: -The interbank lending market is a market in which banks lend funds to one another for a specified term. Most interbank loans are for maturities of one week or less, the majority being overnight.