Question

The money deposited in the bank or the money lent by a bank to a borrower is called the _________ *
amount
interest
principal
rate​

Answer 1

Answer:

The money deposited in the bank or the money lent by a bank to a borrower is called the interest

Answer 2

Concept

A bank is a financial institution that accepts public deposits, creates a demand deposit, and makes loans at the same time. Lending can be done directly by the bank or indirectly via capital markets.

Given

The money deposited in the bank or the money lent by a bank to a borrower is called the _________ *amount

interest

principal

rate​

Find

We are asked to find the correct option.

Solution

• The money deposited in the bank or the money lent by a bank to a borrower is called the Principal.
• The principal is the amount you promised to repay at the outset. The expense of borrowing the principal is called interest.

Hence the correct option is Principal means (c) option is the correct answer.