Kristi deposits, or invests, her paycheck in a savings account. The bank can then offer some of the money to a borrower in the form of a loan. How can Kristi benefit financially from this relationship?
A)
Kristi can earn interest on her original deposit.
B)
Kristi can feel good that she supported a borrower.
Eliminate
C)
Kristi can choose to invest her money in another bank that doesn't make loans to borrowers.
D)
Kristi can decide to take her money out the savings account before the loan is made to save money.

Question

Kristi deposits, or invests, her paycheck in a savings account. The bank can then offer some of the money to a borrower in the form of a loan. How can Kristi benefit financially from this relationship?
A)
Kristi can earn interest on her original deposit.	
B)
Kristi can feel good that she supported a borrower.	
Eliminate
C)
Kristi can choose to invest her money in another bank that doesn't make loans to borrowers.	
D)
Kristi can decide to take her money out the savings account before the loan is made to save money.

anonymous · Answer

I believe A is the correct answer