The correct answer is B) loaning depositor's money to borrowers and charging the borrower's interest.
The statement that accurately describes the primary way in which banks and other financial institutions generate profits is " loaning depositor's money to borrowers and charging the borrower's interest."
That is how banks do business and get a profit. They have this "x" amount of money that is offered to people to be borrowed. Every time the bank borrows money, it charges interests. You have to pay the loan on time if you do not want extra charges. If you have a credit card account, you pay a monthly or annual fee for the service.
