Question

One important way in which banks make economic growth possible is by

Answer 1

Answer:

Here is the full question:

One important way in which banks make economic growth possible is by :

A)  selling savings bonds.

B)  cashing payroll checks.

C)  lending money to business startups.

D)  offering checking and savings accounts

Answer is C).

Explanation:

Bank loans are the most important bank product as loans represent the most profitable segment for the bank. Of course, banks do earn fees and commissions on various transactions and they do offer general personal account maintenance.

However, loans are the primary source of income for all banks, as loans are the bank products that give the bank a monthly interest rate, which is very lucrative in the long run.