How do Bank earn Money? Class 10
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Heya....
Banks earn money in terms of demand deposits by us...As we deposit our surplus income in banks and the bank used up that for it's money creation by loans ....
Banks earned money by selling their securities and bonds... In terms of unpaid loan bank currupt the securities of collateral and seller it...
Banks earn money in terms of demand deposits by us...As we deposit our surplus income in banks and the bank used up that for it's money creation by loans ....
Banks earned money by selling their securities and bonds... In terms of unpaid loan bank currupt the securities of collateral and seller it...
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How Banks Earn their Money - Risks and Rewards Banks need to make enough money to pay their employees, maintain the buildings and run the business. There are three main ways banks make money: by charging interest on money that they lend, by charging fees for services they provide and by trading financial instruments in the financial markets.
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