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Banks make money by A. charging interest.
B. charging the Fed.
C. selling customer assets.
D. time-share programs.
Answer
The banks lend money to customers at a higher rate than they pay to depositors or than they borrow it.
The difference, known as the margin or turn, is kept by the bank.
For example, if a bank pays 1% interest on deposits, they may charge 6% interest on loans.
More specifically, banks collect interest on loans and interest payments from the debt securities they own, and pay interest on deposits, CDs, and short-term borrowings.
this is through charging interest rate.
Virtual Teaching Assistant: Colleen R.
Question Level: Basic
Karma: Free
Upload Date: 5/31/2017
This 18 words question was answered by Colleen R. on StudySoup on 5/31/2017. The question contains content related to Business Since its upload, it has received 78 views.