Question

how do deposit with Bank become their source of income​

Answer 1

Explanation:

Banks use the major portion of the deposits with them to extend loans. ... Banks charge a higher interest rate on loans than what they pay on the deposits. The difference between interest rate charged from the borrowers and what is paid to the depositors is, thus, the main source of income for the banks.Banks use a significant share of the deposits to provide mortgages to people for several commercial enterprises. The interest charges on mortgages are extremely costlier than what the bank commands on the collateral it has. Therefore, the distinction between what is imposed by the borrowers and what is given to the depositors is the source of revenue of the banks.

Answer 2

Answer:

HOPE IT HELPS YOU PLEASE MARK ME THE BRAINLIEST PLEASE PLEASE