Ask Question
BusinessBusiness
23 February, 04:53

Why can a bank afford to pay interest rate on a savings account

+5
Answers (1)
  1. 23 February, 05:05
    0
    How can a bank afford to pay interest? Banks use the money deposited on savings accounts to lend to borrowers, who pay interest on their loans ... The difference between the money earned as interest on loans, any operating expenses, and the money paid as interest to savings accounts is profit to the banks.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Why can a bank afford to pay interest rate on a savings account ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
A consumer values a car at $525,000 and a producer values the same car at $485,000. If the transaction is completed at $510,000, what level of tax rate will result in unconsummated transaction? a) 1%b) 2%c) 5%d) 3%
Answers (1)
Based on the pure expectations theory, is the following statement true or false? The pure expectations theory assumes that a one-year bond purchased today will have the same return as a one-year bond purchased five years from now. a. True b. False
Answers (1)
The government of a country, which has adopted American GDP accounting conventions, reported that seasonally adjusted GDP in quarter 3 was $48 billion at an annual rate.
Answers (1)
The evidence of debt and personal promise to repay that debt is called
Answers (1)
Suppose a country is projecting a deficit of $20 million next year. Which of the following events would add most to the debt? All of the above would increase the debt by the same amount. An increase in the deficit of $500,000.
Answers (1)
New Questions in Business
Samuel is working on his annotated bibliography. While writing his annotations, he copies and pastes materials from his sources into his annotations without using quotation marks. This is
Answers (1)
Vanessa's snowboard manufacturing company has encountered problems with one of its computerized decal makers. Vanessa might get someone from the Maintenance, Installation and Repair Pathway of the Manufacturing career cluster to fix the issue.
Answers (1)
You can save $3,000 per year for the next five years in an account earning 8 percent per year. how much will you have at the end of the fifth year if you make the first deposit today? (do not round intermediate calculations.
No Answers
Where did the demand for national prohibition originate?
Answers (1)
Journalize the following transactions using the allowance method of accounting for uncollectible receivables. April 1 Sold merchandise on account to Jim Dobbs, $6,800. The cost of the merchandise is $6,700.
Answers (1)
Home » Business » Why can a bank afford to pay interest rate on a savings account
Sign Up Forgot Password?