Commercial banks act as middlemen between savers and borrowers, therefore they are called _____.

Question

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Commercial banks are financial intermediaries because they accept deposits from savers and use that money to make loans to borrowers. They earn a profit by charging a higher interest rate on loans than they pay on deposits. Lenders of the last resort refer to central banks that provide emergency loans to commercial banks, banker's banks are institutions that serve other banks, thrift institutions are specialized financial institutions, and profitable institutions is not a term commonly used to describe commercial banks.

Commercial Banks Act as Middlemen Between Savers and Borrowers, Therefore