All categories

3 years ago

Why can a bank afford to pay interest rate on a savings account

Business

2 answers:

baherus [9]3 years ago

7 0

Answer:

Banks use the money from borrowers whom they charge at a high interest rate, and gives a lower rate to the people who have a savings account.

Nadusha1986 [10]3 years ago

3 0

How can a bank afford to pay interest? Banks use the money deposited on savings accounts to lend to borrowers, who pay interest on their loans. ... The difference between the money earned as interest on loans, any operating expenses, and the money paid as interest to savings accounts is profit to the banks.

You might be interested in

Inacio Corporation uses the weighted-average method in its process costing system. Data concerning the first processing departme

lakkis [162]

Answer:

Option D , $15.12

Explanation:

Weighted-average method :

Materials

Units transferred to the next department = 10,300

Ending work in process:

Materials: 1,200 units × 90% = 1080

Equivalent units of production =10,300+1080= 11,380

Materials

Cost of beginning work in process inventory= $2,700

Costs added during the period = $173,900

Total cost (a) =$173,900+$2,700 = $176,600

Equivalent units of production (b)= 11,380

Cost per equivalent unit (a) ÷ (b) = $15.51

The cost per equivalent unit for materials for the month in the first processing department is closest to $15.51

3 0

3 years ago

The U.S. Census Bureau statistics showed that more than 1.3 million people in Illinois-about 11% of the population-are without m

Vlad [161]

What<span>approximately would be the total population of Illinois?
</span>
-12 million

7 0

3 years ago

Which factors influence changes in consumer demand?

Lesechka [4]

There are a lot of factors that might be the cause of the change of consumer demands.
First is the Income. If the income of the person can afford the price of the product?
Second is the sudden change of price. If your product affordable? or expensive?
Third is the advertisement expendituress.

8 0

2 years ago

The following lists are nations with mixed economies. In which list is the free market most dominant?. . A. France, Canada, Sout

Marizza181 [45]

A free market is a type of economy which allows the manufacturers and consumers to interact resulting to the relationship between the supply and demand market. This is different from the command market in which the government controls solely. One of the countries with strong free market economy are B. US, UK, HK and Singapore.

5 0

2 years ago

8. Joe Davola planned to begin saving for his retirement starting next month. Joe’s plan was to invest $450 per month, starting

gayaneshka [121]

B.81.06 because joe began saving listen to began saving

4 0

3 years ago