Question
At the end of the week, Carla receives her paycheck and goes directly to the bank atter work to
make a deposit into her savings account. The bank keeds the redwired veserve and then loans
out the remaining balance to a qualified borrower named Malk as a dortion of his small
business loan. Malik uses the loan to buy a tractor for his construction business and makes
small monthly payments to the bank to paypack the principan balande dius unterest on the roan
The bank profits from a portion of the interest payment received and also
interest back to Carla in the form or an interest payment to her savings
passes some of re
the bank is acting.
ассо
this example
O As a stockbroker by investing Cara's money in
• Illegally; the bank should not give Carla's money
© A financial planner by supporting the growth
O
Ma
less
• As an intermediary between the saver (Carla)
and he
0
Answer
In this example, the bank is acting as an intermediary between the saver (Carla) and the borrower (Malik), providing a loan to Malik and paying interest to Carla on her savings.