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Banks get their profits from the below actions:
- By charging customers for the services offered to them - Ex: Charges for fund transfers, Charges for account maintenance & opening etc
- By getting interest from customers to whom loans are provided.
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∙ 13y ago
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Credit unions differ from banks because they don't do what?
Seek to make profits
Disadvantages and advantages of merging banks?
One advantage of merging banks is that the banks share the risk of their money ventures. One of the disadvantages of merging them is that they share the profits of any venture.
What do banks with some of the profits they make by loaning out the money?
pay interest on savings accounts
What do banks do with some of the profits they make loaning out the money in their customers saving accounts?
pay interest on savings accounts
How are credit unions different from normal commercial banks?
All of the profits in Credit Unions are returned to members (everyone with a share account) in lower rates on loans and higher rates on dividen balances. Credit Union get 7-8% of their income from fees, whereas commercial banks average fee income is 40-50%. Commercial banks profits go to their investors/share holders.
Credit unions differ from banks because they don't do what?
Seek to make profits
What are undivided profits?
Undivided profits is a term that refers to corporate earnings that have gathered over a period of time. For banks, the term means retained earnings.
Disadvantages and advantages of merging banks?
One advantage of merging banks is that the banks share the risk of their money ventures. One of the disadvantages of merging them is that they share the profits of any venture.
What do banks with some of the profits they make by loaning out the money?
pay interest on savings accounts
Which of the following most accurately describes what banks do with their excess reserves?
Banks use excess reserves to make loans to customers so that they can make profits on the interest.
What do banks do with some of the profits they make loaning out the money in their customers saving accounts?
pay interest on savings accounts
How are credit unions different from normal commercial banks?
All of the profits in Credit Unions are returned to members (everyone with a share account) in lower rates on loans and higher rates on dividen balances. Credit Union get 7-8% of their income from fees, whereas commercial banks average fee income is 40-50%. Commercial banks profits go to their investors/share holders.
Why PayPal is not work in Georgia?
If PayPal will enter at Georgian market, Georgian banks would lose profits, so they are in opposition
Can banks invest in mutual funds?
They can invest their own income/profits in a mutual fund but they cannot invest the depositors money in a mutual fund
Why were many African governments unstable after gaining their independance?
some governments experienced corruption and poor planning. also, many government leaders were taking the countries profits and putting them into their own personal foreign banks.
What percentage of tax do banks pay on their profits?
not sure... but they pay their fair share of it. There known as Public Liability Companies.. which means they affect the public on a whole
Do investment plans in banks allow partial withdrawals?
Yes, most of the investment plan with banks allow free partial withdrawal facility. Some of them allow it but give you only a proportion of the profits. However, you need to check with your bank for it.
