When do banks make money from deposits

Asked by maham237 @ 13/01/2021 in Business viewed by 325 People

When do banks make money from deposits?
A. people withdraw money from their account
B. when banks pay interest to account holders
C. when people add money to their account
D. when banks loan the money to another consumer
The answer is not C

Answered by maham237 @ 13/01/2021

The correct answer is D. When banks loan the money to another consumer.

Banks earn profit by lending the money from customers who deposit to bank or borrowed from other banks by lending it at a higher interest rate than the amount the borrowed it.

Banks pay low rates to those deposit with them those who their money is in money market fund or in savings account, and charge high rates to those who borrow as loan.

Some of the risks that a bank faces include operation risk, market risk, reputation risk, and liquidity risk.

Able, baker, and charles are engaged in the marketing to and enrollment of beneficiaries into medicare health plans. mr. able is an independent agent paid directly by a health plan. ms. baker is an independent agent paid through a field marketing organization (fmo). mr. charles is an independent agent paid for his work by a third-party marketing organization (tmo). how do the cms compensation rules apply to these three agents?

Asked by maham237 @ 13/01/2021 in Business viewed by 2752 persons

When do banks make money from deposits

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