Question

Banks are financial intermediaries because they Group of answer choices print money as needed for borrowers whether business, individual, or government entities. hold all the money in the economic system in currency form. link savers who deposit money and borrowers who seek loans.

Answer 1

Answer: link savers who deposit money and borrowers who seek loans.

Step-by-step explanation:

Loans are simply savings that someone else put into a bank. Without the bank however, it would be hard to connect the people who did the saving with the people who wanted to borrow.

The bank therefore acts as an intermediary for these people. Those who want to save, put money in a bank and those who want to get money, will then be loaned it by the bank. Because the banks has developed expertise in borrowing, it also protects the savings of the savers by not loaning out money to those that might not pay back. This is just one advantage of having the bank as an intermediary.