No. That would be a conflict of interest. Often political candidates loan money to themselves.
Banks do not create money, they only use the money from saving accounts and lend it to people. When they lend the interest from the loan is profit for the bank.
If your credit is good, a bank will lend you money. If your credit is bad, then only a very close personal friend, who is willing to take a risk, will lend you money.
The bank customers share of profit made on loans by the bank is called the "Interest". It is the money the bank pays the customer for having their money deposited with the bank. As you know, the bank earns an interest income from loan customers for the money they lend them, and since this money they lend is taken from the deposits placed by customers, banks share the profit by paying an interest to the customer who has placed the deposit with them.
The bank would deposit a portion of the money with the central bank and then think of ways to lend this money and earn an income out of it.
Yes, the amount a bank can lend depends on the amount of money they have plus a reserve requirement. For example, if a bank's reserve requirement is 10% and you deposit $10,000 the bank can lend a maximum of $100,000 based on your 10k, and this sums up for all it's money.
Banks do not create money, they only use the money from saving accounts and lend it to people. When they lend the interest from the loan is profit for the bank.
If your credit is good, a bank will lend you money. If your credit is bad, then only a very close personal friend, who is willing to take a risk, will lend you money.
Freedmen's Bank
The bank customers share of profit made on loans by the bank is called the "Interest". It is the money the bank pays the customer for having their money deposited with the bank. As you know, the bank earns an interest income from loan customers for the money they lend them, and since this money they lend is taken from the deposits placed by customers, banks share the profit by paying an interest to the customer who has placed the deposit with them.
The bank would deposit a portion of the money with the central bank and then think of ways to lend this money and earn an income out of it.
Yes, the amount a bank can lend depends on the amount of money they have plus a reserve requirement. For example, if a bank's reserve requirement is 10% and you deposit $10,000 the bank can lend a maximum of $100,000 based on your 10k, and this sums up for all it's money.
The bank customers share of profit made on loans by the bank is called the "Interest". It is the money the bank pays the customer for having their money deposited with the bank. As you know, the bank earns an interest income from loan customers for the money they lend them, and since this money they lend is taken from the deposits placed by customers, banks share the profit by paying an interest to the customer who has placed the deposit with them.
They get it from the other Banks customers accounts i think!
The main feature of a commercial bank is to provide security for the holding of peoples money. Another important feature of the commercial bank is to lend money.
The money you deposit into your account is an obligation for the bank to be paid to you anytime you want. The bank would lend this money to its other customers and earn an interest income from it.
Banks lend money because the interest paid on those loans is one of the ways in which they make a profit. Another way they earn money is to invest the money that is deposited in their bank.
A bank might lend you money if you apply for a loan. This comes down to grammar calisthenics. In US English the words are interchangeable. "Loan" is most commonly used in the US vernacular. However if you wish a strict reading of the words: Loan is a noun. Lend is a verb.