opens a savings account

$$

with the original lender

at a local commercial bank

with the borrower

with a$$ $$200$ deposit. The

$$

bank

borrower

original lender

loans out the$$ $$200$ with other funds from other savings accounts to

$$

the original lender

a local businessman

who is expanding his business. The local businessman pays back the loan over time with interest and the bank credits the savings account with interest. The individual withdraws money from the savings account to buy a new bike.