How do banks lend Money??
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because banks collect more loans in interest from the debt security they own.
They rate at higher interest then the cost of money they lend.
They rate at higher interest then the cost of money they lend.
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banks basically make money by lending money at rates higher than the cost of themoney they lend. More specifically,banks collect interest on loans and interest payments from the debt securities they own, and pay interest on deposits, CDs, and short-term borrowings.
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