alvabox247
contestada

How do banks create money?
a) by issuing loans and opening checking accounts
b) by holding money in their vaults
c) by charging interest
d) by printing it

Respuesta :

moodycomputerman
C

Banks do not really have any goods to sell, they’re in the business of holding money for others and loaning that money out to others, normally with interest. It is the interest off of loans that normally create income and allow the bank to have a positive cash flow.
kapoorprachi783

The correct answer is option B) by holding money in their vaults.

How does a bank make money?

Banks make money from service charges and fees. These fees vary based on the products, ranging from account fees (monthly maintenance charges, minimum balance fees, overdraft fees, non-sufficient funds (NSF) charges), safe deposit box fees, and late fees.

Where do banks borrow money from?

Banks can borrow from the Fed to meet reserve requirements. The rate charged to banks is the discount rate, which is usually higher than the rate that banks charge each other. Banks can borrow from each other to meet reserve requirements, which are charged at the federal funds rate.

Learn more about Banks here: brainly.com/question/24792133

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