You are starting a business in a new industry and need a $300 million loan for your initial investment. However, there are few, if any, savers willing to lend such a large sum.
A bank helps solve this problem by
a. creating long-term loans from short-term deposits.
b. spreading the risk of lending money across many borrowers.
c. pooling savings from many savers.
d. providing payment services.
A bank helps solve this problem by
a. creating long-term loans from short-term deposits.
b. spreading the risk of lending money across many borrowers.
c. pooling savings from many savers.
d. providing payment services.