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

Business

Economics

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

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter13: Money And The Financial System

Section: Chapter Questions

Problem 2.8P

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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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