Individuals that lend funds to a bank by opening a checking account are calledA) policyholders.B) partners.C) depositors.D) debt holders

To answer the question of what individuals who lend funds to a bank by opening a checking account are called, let’s analyze the options provided.

1. Policyholders: This term often refers to individuals who hold an insurance policy. They are not related to banking directly, especially in the context of checking accounts.

2. Partners: This terminology usually describes individuals who have a formal share in a business or organization. It does not apply here as checking account holders do not share ownership or profits in the bank.

3. Depositors: This term refers specifically to individuals or entities that place their money in a bank account. When someone opens a checking account, they are indeed depositing funds with the bank. In this context, they lend their money to the bank in exchange for the ability to use those funds.

4. Debt holders: This typically refers to individuals or entities that hold debt instruments, such as bonds. This does not apply to those who simply open checking accounts.

Final Answer

The correct answer is C) depositors. These individuals lend funds to a bank by opening checking accounts, allowing the bank to use these funds for various purposes while enabling depositors to access their money through checks or debit transactions.