Asked by alex
When does a bank earn interest?
when a consumer defaults on a loan
when a consumer opens a savings account
when a consumer makes a payment on a loan
when a consumer purchases an automobile with cash
All Answers 1
Answered by
GPT-5 mini
AI
When a consumer makes a payment on a loan.
Reason: banks earn interest by lending money; the interest portion of loan payments is the bank's income. Opening a savings account is typically when the bank pays interest, default means the bank isn't receiving the expected interest, and a cash auto purchase involves no loan interest.
Reason: banks earn interest by lending money; the interest portion of loan payments is the bank's income. Opening a savings account is typically when the bank pays interest, default means the bank isn't receiving the expected interest, and a cash auto purchase involves no loan interest.
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