Question

why should a bank want people to have higher income

Answer 1

banks works between people as mediator.

Explanation:

if somebody take loan then they pay interest to bank.

then depositors get interest .

Answer 2

Answer:

Because then only people will park their additional money in bank and bank will able to circulate the money among its customer.

Explanation:

Although banks do a variety of tasks, their main duty is to collect deposits from those who have money, pool those deposits, and then lend the money to others who need it. Banks act as middlemen between depositors (who provide the bank with funds) and borrowers (to whom the bank lends money). Interest is the term used to describe both the fees that banks charge for deposits and the revenue they get from loans.

Individuals and households, financial and nonfinancial companies, as well as national and municipal governments, can all make deposits. In a way, borrowers are similar.

Deposits may be readily available (in a checking account, for instance) or subject to certain limits (such as savings and time deposits).

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