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adell [148]
3 years ago
5

How do banks use deposits?

Mathematics
1 answer:
TEA [102]3 years ago
3 0
As mentioned before, banks<span> basically make money by lending money at rates higher than the cost of the money they lend. More specifically, </span>banks<span> collect interest on loans and interest payments from the debt securities they own, and pay interest on </span>deposits<span>, CDs, and short-term borrowings.</span>
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