Question

If you deposit money in the bank, in essence, you are: Group of answer choices a borrower, since all bank funds are borrowed from the federal government. 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). a supplier of funds, since the bank loans money to you. neither a borrower nor supplier of funds in this case, since you have neither lent nor borrowed money

Answer 1

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).

Step-by-step explanation:

A deposit money bank can be regarded as a financial intermediary that connects a supplier of fund to those in need of funds.

Deposit money banks practice what is known as fractional banking

Fractional banking is a banking system where a portion of customer's deposits is kept as reserves while remaining portion is lent out. The amount kept as reserves is determined by the required reserve ratio set by the Central bank.

If the required reserve ratio is 10% and $100 is deposited, reserves would be $10 and $90 would be lent out