The business of banking solves the problem of

Name: The business of banking solves the problem of
Brand: Quizplus
Rating: 4.8 (44 reviews)

Question

Quizplus · Accepted Answer

Banks serve to reconcile the differing needs of savers, who generally prefer the option to access their funds on demand (liquidity), and borrowers, who typically need loans for longer terms (illiquidity). This process involves transforming the short-term deposits into long-term loans, effectively managing the liquidity mismatch between savers and borrowers.

The Business of Banking Solves the Problem of