ECONOMICS
CREDIT
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Bank charges depositors for keeping their money safe with them
|
|
|
The difference between what is charged from the borrowers and paid to the depositors is the main source of bank’s income.
|
|
|
Banks earn huge amounts of money by investing the money of the depositors in various company shares
|
|
|
The Government of India gives huge amounts of money to the banks to help their smooth functioning.
|
Detailed explanation-1: -The primary source of income for banks is the difference between the interest charged from the borrowers and the interest paid to the depositors. Banks usually collect higher interest from loans than the interest they provide for deposits.
Detailed explanation-2: -Updated On: 27-06-2022. Bank charges that the depositors pay for, keeping their money safe is the main, source of the bank’s income. The difference between what is charged from the borrowers and paid to the depositors is the main source of bank’s income.
Detailed explanation-3: -The difference between the amount charged from borrowers and the amount paid to depositors is the primary source of income for banks. This amount is known as interest.
Detailed explanation-4: -What is the main source of income of the banks, if they forward the depositor’s money to the lender? Answer: Banks charge a higher rate of interest on loans than what they offer on deposits. The difference between what is charged from borrowers and what is paid to depositors is their main source of income.
Detailed explanation-5: -The difference between the interest paid by the bank to its depositors and interest paid by the borrowers to the bank is the income of the bank.