It is called a loan.
Yes.
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.
No, anyone with money can lend money. However, banks follow a proven process before lending money, that includes verifying income, checking credit ratings, requiring signatures on powerful contracts and so forth. Banks have established a best practices process for lowering their risk of loss and elevating their chances of making money in interest on money they lend.
Banks make money by lending money to people and charging people for borrowing. The amount banks charge is called interest. Banks borrow money from other people and pay them interest on the amount borrowed. Banks charge more interest on the money they lend than they pay one the money they borrow. That is how they make money. When people deposit money with a bank, the bank is literally borrowing money from some people so they can lend it to other people. That is why banks pay interest.
Money lenders and banks.
people at banks
other banks.
Workers and Businesses
It is called a loan.
Yes.
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.
Banks refused to lend to buisnesses.
They get it from the other Banks customers accounts i think!
The government restricts the amount of money that banks can lend.
No, anyone with money can lend money. However, banks follow a proven process before lending money, that includes verifying income, checking credit ratings, requiring signatures on powerful contracts and so forth. Banks have established a best practices process for lowering their risk of loss and elevating their chances of making money in interest on money they lend.
Banks make money by lending money to people and charging people for borrowing. The amount banks charge is called interest. Banks borrow money from other people and pay them interest on the amount borrowed. Banks charge more interest on the money they lend than they pay one the money they borrow. That is how they make money. When people deposit money with a bank, the bank is literally borrowing money from some people so they can lend it to other people. That is why banks pay interest.