Which statements correctly describe bank loans? Choose three correct answers.Longer-term deposits pay interest.A bank lends money to a customer.Bank loans provide easier access to deposits.The customer pays back money over time.The customer pays extra money, called interest.
Answer
A
Longer-term deposits pay interest.
B
A bank lends money to a customer.
C
Bank loans provide easier access to deposits.
D
The customer pays back money over time.
E
The customer pays extra money, called interest.
Explanation
A bank loan is money a bank lends to a customer. The customer repays the loan over time and usually pays extra money, called interest, for borrowing it. Longer-term deposits earning interest and easier access to deposits are not descriptions of a bank loan.
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