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Resolved Question
Dec 25, 2006, 8:34 pm
About Financial Institutions 
What would other financial institutions do with the money borrowed apart from giving out loans? 

   
   

Answers  (1)


k7 		Dec 27, 2006,1:02 am
Well, the loan is also used for working capital, that means that it is used to finance the operations of the organisation. An operation could be setting up a new branch where rent and employees have to be paid. It is just like any other business that would use money loaned to them.