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If you deposit money in the bank, in essence, you are:_______.
a. a supplier of funds, since the bank simply is an intermediary between those who want to borrow loanable funds and those who are willing to lend them (depositors).
b. a borrower, since all bank funds are borrowed from the federal government.
c. a supplier of funds, since the bank loans money to the government for daily operations.
d. neither a borrower nor supplier of funds in this case, since you have neither lent nor borrowed money.
e. not a supplier of funds, since mutual funds are the source of lending to firms

Answer :

Samawati

Answer:

a. a supplier of funds, since the bank simply is an intermediary between those who want to borrow loanable funds and those who are willing to lend them

Explanation:

Banks are primarily lending institutions. They make money from the interest they charge on issued loans. Banks accept deposits from customers and lends money to firms and households for development, expansions, and consumption.

Banks offer low-interest rates on deposits and charge a higher interest on loans, thereby making profits. By accepting deposits from customers, banks pool funds together, providing a source of borrowing for investors and consumers. A customer depositing cash into their account becomes a supplier of resources that can be borrowed by interested entities. Banks, therefore, act as intermediaries between the suppliers and users of funds.

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