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What is someone who lends money at excessive rates of interest?
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Why does a bank charge interest on the money it lends?
Because that is the business or main purpose of the Bank. When you deposit any money in a bank, you expect an Interest. How can the bank afford to pay you interest? It lends the money you deposited and obtains an interest from the loan borrower. After taking a percentage of that interest as profit for them, the remaining is usually given to the deposit customers. The bank will be in huge losses of it is accepting deposits and paying interest while not charging interest on the money it lends.
Why can a bank afford to pay an interest rate on a savings account?
because the bank lends money out at a higher interest rate
What do you call a person who lends money at a very high interest?
The common term is a Loan Shark.
What is the difference between banking and financing?
A Banker who borrows money and lends money for the people is called as Banking.Whereas financing is the lending of money for the people with an interest for the use of people.
When do suppliers become creditors?
When a debtor lends money to someone else, he becomes a creditor. noura.
What is an usurer?
Someone who lends money with excessive rates of interest.
What do you call a person who lends money and keeps goods as security?
Pawnbrokernoun: A person who lends money at interest on the security of an article pawned.
Why does a bank charge interest on the money it lends?
Because that is the business or main purpose of the Bank. When you deposit any money in a bank, you expect an Interest. How can the bank afford to pay you interest? It lends the money you deposited and obtains an interest from the loan borrower. After taking a percentage of that interest as profit for them, the remaining is usually given to the deposit customers. The bank will be in huge losses of it is accepting deposits and paying interest while not charging interest on the money it lends.
A person who lends money and charges high rate of interest?
usurer
Why can a bank afford to pay an interest rate on a savings account?
because the bank lends money out at a higher interest rate
What do you call a person who lends money at a very high interest?
The common term is a Loan Shark.
Who regulates interest rates?
To a certain extent the banks do. But the Fed, which lends money to banks, can have an impact on it depending on what interest they charge the banks.
When the Fed lends money to a commercial bank what does the bank do?
pays the Federal funds interest rate on the loan.
What is a bank rate?
A bank rate is the rate at which a central bank charges interest when it lends money to another bank.
What is the difference between banking and financing?
A Banker who borrows money and lends money for the people is called as Banking.Whereas financing is the lending of money for the people with an interest for the use of people.
What is the difference between finance and banking?
A Banker who borrows money and lends money for the people is called as Banking.Whereas financing is the lending of money for the people with an interest for the use of people.
When do suppliers become creditors?
When a debtor lends money to someone else, he becomes a creditor. noura.
