Answer:
D
Explanation:
A loan refers to money borrowed by people or organisations from the bank
The type of bank service which Rachel is using in order to buy a car is 'loan.'
A bank, an financial institute that deals in money and its substitutes. A bank accepts deposits from the public and then creates a demand deposit while also simultaneously providing loans. Thus, banks are intermediaries between depositors (who lend money to the bank) and borrowers (to whom the bank lends money).
Banks provide a lot of services to its customers. These services intends to attract customers. Such services provided by the banks are- giving loans, credit and debit cards, discounting on bills of exchange, cheque payments, digital financial services, and even personal services.
A loan is a sum of money that one or more individuals or companies borrow from banks or other financial institutions so that they can manage planned or unplanned events financially.
When a loan is borrowed from a bank or other financial institution it has to be paid back, usually together with an extra amount of money called interest, that you have to pay as a charge for borrowing within a given period of time. Thus, loans provide liquidity to businesses and individuals, and so they are a necessary part of the financial system.
Hence, option D is correct.
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