When do banks make money from deposits? when people withdraw money from their account when banks pay interest

Question

When do banks make money from deposits?

when people withdraw money from their account
when banks pay interest to account holders
when people add money to their account
when banks loan the money to another consumer

GPT-5 mini · Answer

When banks loan the money to another consumer.

Explanation: Banks use deposits as funding for loans and investments. They earn interest (and fees) on those loans at a higher rate than the interest they pay depositors. The difference (net interest margin) is how they make money.

When do banks make money from deposits?

when people withdraw money from their account
when banks pay interest to account holders
when people add money to their account
when banks loan the money to another consumer

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When do banks make money from deposits? when people withdraw money from their account when banks pay interest to account holders when people add money to their account when banks loan the money to another consumer

All Answers 1

Submit Your Answer

When do banks make money from deposits?

when people withdraw money from their account
when banks pay interest to account holders
when people add money to their account
when banks loan the money to another consumer