How do banks earn their income...??
Answers
Answer:
Explanation:
Banks are businesses: they need to make money and they do this in a number of different ways.
Commercial and retails banks raise funds by lending money at a higher rate of interest than they borrow it. This money is borrowed from other banks or from customers who deposit money with them. They also charge customers fees for services to do with managing their accounts, and earn money from bank charges levied on overdrafts which exceed agreed limits.
Investment banks earn fees from providing advice to large organisations coming to the City to issue stocks and shares, and for underwriting these issues, as well as trading securities on the financial markets.
Answer:
banks give loans to people at a high interest rates than they give to them whose money are in banks
by this the banks earn income