Question

How do the deposits with banks become their source of income?

Answer 1

Answer:

Deposits from customers to the bank become a direct source of their capital for busines.

Explanation:

• Once this money is deposited, the bank holds it as capital for its bussiness.

• The bank then lend this money to other people who want loans at an intrest.

• The intrest from the deposited money now becomes the profit of the bank.

• Through this process, the bank makes the deposited amount its source of income.