ECONOMICS
CONSUMERS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Banks are places where people can spend money.
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Banks buy groceries and other goods.
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Banks make and sell goods.
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Banks lend people money and are places to save money.
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Detailed explanation-1: -The bank then lends the money it has on deposit to other individuals and businesses and receives interest payments from the borrower in return. Banks make a profit on the difference between the interest rate that they pay depositors for the use of their money and the higher interest rate that they charge borrowers.
Detailed explanation-2: -Banks mediate between people having surplus cash and those in need of it. 3. They give interest to the depositors and they charge interest on those taking loans from the banks. The difference between the interest rates is the main income of the bank.
Detailed explanation-3: -It plays an important role in providing funds to different priority sectors like Agriculture, Small scale industries, trading enterprises, real estate, etc. Business Development: Indian banking sector helps a lot in business development by developing strong ties with foreign countries through establishing branches.
Detailed explanation-4: -Commercial banks are the other type of institutions which are a part of the money-creating system of the economy. In the following section we look at the commercial banking system in detail. They accept deposits from the public and lend out part of these funds to those who want to borrow.
Detailed explanation-5: -The Primary Way That Banks Make Their Money. The main way that banks make money is from their customers who deposit with them. They then use that money to then lend to other customers.