Savings by ________ is the origin of much of the money that funds large business loans in the economy.

Question

Quizplus · Accepted Answer

Savings by consumers is the most significant source of funds that banks use to lend to businesses. This is because banks take the savings deposits made by consumers and lend that money to businesses at a higher interest rate, which generates income for the bank. The U.S. government and small businesses may also contribute to the overall funds available for lending, but they are not the primary sources.

Savings by ________ Is the Origin of Much of the Money