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

Shareholders (the owners) get profits first (dividends/stock value). Profitable banks can then expand, pay suppliers and other companies, and reinvest. The wider economy benefits last via taxes, lending capacity and economic activity.