Example$$ One:$($Select from the$$ drop$-$down menus.$)$

$$

$$

opens a savings account

$$

$$

with the borrower

with the original lender

at a local commercial bank

with a$$ $$200$ deposit. The

$$

$$

original lender

bank

borrower

loans out the$$ $$200$ with other funds from other savings accounts to

$$

$$

the original lender

a local businessman

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.

Part $2$

In this example of the cycle of$$ money, the benefit for the lender$$ is:$$

$$

$$

the interest earned on the savings deposit can be used to buy a consumer good.

the interest earned on the savings deposit can be used to recoup the savings deposit.

For the$$ bank, the benefit$$ is:

$$

$$

the difference between the interest paid by the businessman and the interest paid to the individual is profit for the bank.

the interest paid by the businessman is profit for the bank.

For the$$ businessman, the benefit$$ is:

$$

$$