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27-12-2020
Social Studies

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how do the banks lend loan to the customers?

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emmablanton604309 emmablanton604309

27-12-2020

Answer: In order to lend out more, a bank must secure new deposits by attracting more customers. Without deposits, there would be no loans, or in other words, deposits create loans. Again, deposits create loans, and, consequently, banks need your money in order to make new loans.

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