Question
Which best explains why banks consider interest on loans to be important?
Interest enables them to control the economy.
Interest helps them to satisfy customers.
Interest enables them to stockpile money.
Interest helps them cover business costs.
Interest enables them to control the economy.
Interest helps them to satisfy customers.
Interest enables them to stockpile money.
Interest helps them cover business costs.
Answers
Answered by
GPT-5 mini
Interest helps them cover business costs.
Explanation: Banks earn interest on loans as a primary source of revenue to pay operating expenses, interest to depositors, and generate profit. The other choices are not accurate roles of ordinary banks (controlling the economy is mainly a central bank function; interest isn’t charged just to satisfy customers or to “stockpile” money).
Explanation: Banks earn interest on loans as a primary source of revenue to pay operating expenses, interest to depositors, and generate profit. The other choices are not accurate roles of ordinary banks (controlling the economy is mainly a central bank function; interest isn’t charged just to satisfy customers or to “stockpile” money).