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Commercial Banks make profit and generate revenue by two ways:
- By charging you a fee for the services they provide you
- By lending the money you have deposited into your account, to other loan customers and getting an interest on the same.
Interest income is the highest revenue and profit generator for any bank.
Wyatt Olson
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Commercial banks and their relationship with the reserve bank?
we take/borrow money from the commercial banks and the commercial banks take/borrow money from the reserve bank
Can a single bank create money?
Banks do not create money. They store it. The government prints money.
How much money do bank owners make a year?
Do you mean commercial banks or investment banks?
Since banks create the money they loan out why and how do bank institutions go bankrupt?
Banks do not create the money they loan out. They get it from deposits and fees and such then give loans to those who deserve it.
How bank create money?
Money is CREATED by governments, not banks. They store money. Banks also EARN money by loaning money to people. People pay the banks back more money than they borrow (interest)
Commercial banks and their relationship with the reserve bank?
we take/borrow money from the commercial banks and the commercial banks take/borrow money from the reserve bank
Can a single bank create money?
Banks do not create money. They store it. The government prints money.
How can marketing concept be applied in commercial banks?
get money.
What does the Fed do for commercial banks?
The main thing the Fed does is that it is the Bank that Banks deposit their money in.
What time value of money applications are used by commercial banks?
Time, is Money
Banks create money by lending but that can't yield them any profit cause they can only receive back money they themselves created Why don't the banks keep all the money they create for themselves?
Your grasp of economics and commerce is flawed. Banks do make a profit on the money they lend, a great deal of it. It is called interest. Nor do banks 'create' money.
What are the importance of banks in the economy?
Banks do not create any money. It only borrow and lend money from their customers. Banks are very important to economy because if bank have certain amount with them then bank can invest in other sectors. which will help in long term by giving them return. Banks have a certain team to do that.
How much money do bank owners make a year?
Do you mean commercial banks or investment banks?
How do banks create money with fractional reserves?
because
Since banks create the money they loan out why and how do bank institutions go bankrupt?
Banks do not create the money they loan out. They get it from deposits and fees and such then give loans to those who deserve it.
How bank create money?
Money is CREATED by governments, not banks. They store money. Banks also EARN money by loaning money to people. People pay the banks back more money than they borrow (interest)
What methods do commercial banks use to advance money to customers?
sex
