How Banks Create Money Example? When a bank makes a loan it creates money. For example when I got a loan to buy my boat, my credit union called an told me that the loan was approved and that I should come in and get the check. I told them to just deposit it in
Why Is It Important For Banks To Make Profit? It all ties back to the fundamental way banks make money: Banks use depositors’ money to make loans. The amount of interest the banks collect on the loans is greater than the amount of interest they pay to customers with savings accounts—and the difference is the
Which Banks Make The Most Money And Take The Most Risk With An Interest Rate Of? Banks make the most money and take the most risk with an interest rate of : 18% (eighteen percent). Do banks make most of their money from interest? Yes, banks make a lot of money banks from charging borrowers