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Ymorist [56]
3 years ago
6

When does a bank earn interest?

Social Studies
2 answers:
snow_tiger [21]3 years ago
7 0
The answer should be C
iris [78.8K]3 years ago
6 0
<h2>Answer:</h2>

C. when a consumer makes a payment on a loan

<h2>Explanation:</h2>

Usually all banks lend money to their customers at a very higher rate than they pay to depositors or than they borrow it. The difference in this process is  known as the margin or turn which is kept by the bank. For example, if a bank pays 1% interest on deposits, then they may charge 6% interest on loans. That is why option C is the correct answer.

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