Which of the following allows banks to minimise the cost to a business of borrowing?
I. Borrowing long and lending short
II. Raising funds from a large number of depositors
III. Creating money by lending all their reserves

Question

Quizplus · Accepted Answer

Raising funds from a large number of depositors allows banks to offer competitive interest rates, thus minimizing borrowing costs for businesses.

Which of the Following Allows Banks to Minimise the Cost