If a bank has 1,000 depositors, each of whom deposits $1,000 in the bank, and the bank makes 100 loans of $10,000 each, then each depositor has contributed:

Question

Quizplus · Accepted Answer

Each depositor has contributed a total of $1,000 to the bank, which is then used to make loans. With 100 loans of $10,000 each, the total loan amount is $1,000,000. Each depositor's contribution represents 0.1% of the total loan amount ($1,000/$1,000,000), or $10 per loan. Therefore, the best answer is C.

If a Bank Has 1,000 Depositors, Each of Whom Deposits