Question

Which is the correct order of entities that benefit when banks make a profit?



employees, shareholders, and the economy
shareholders, shoppers, and the economy
employees, companies, and the economy
shareholders, companies, and the economy

Answer 1

shareholders, companies, and the economy

Reason: profits first flow to owners/shareholders (dividends, retained earnings), then support businesses (bank lending, services, suppliers), and finally generate wider economic benefits (taxes, credit availability, stability).