Question: Example One: ( Select from the drop - down menus. ) opens a savings account with a $ 2 0 0 deposit. The loans out
Example One: Select from the dropdown menus.
opens a savings account with a $ deposit. The
loans out the $ with other funds from other savings accounts to who is expanding his business. The local businessman pays back the loan over time with interest and the bank credits the savings account with interest. The individual withdraws money from the savings account to buy a new bike.
In this example of the cycle of money, the benefit for the lender is:
For the businessman, the benefit is:
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