0
The banks loan people money because it is how banks earn money. The bank will loan out the money to people, and the people will have to pay back with interests so the bank will be making money by just loaning people money. That is why the banks owners get so rich. They will loan out money to a lot of people and they will put a high interest. When they get the money back, they will earn money without even doing any work.
Wiki User
∙ 12y ago
Add your answer:
Earn +20 pts
What do banks do with the money not held in reserve?
Loan it out to people, because they'll make more money by lending than by saving.
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.
What are loan modification loans?
Loan modification leads are names and numbers of people who have loans on their homes that they want to refinance. These are useful to banks so they can call people and make money.
Why is a bondholder similar to a bank?
Bondholders loan money to bond issuers just as banks loan money to customers.
Can you deposite a payday loan into someone elses account?
Banks will allow deposits into members' accounts. Get your loan then carry the money to their bank if the payday loan people won't do a direct deposit.
Why do banks loan money?
The banks loan people money because it is how banks earn money. The bank will loan out the money to people, and the people will have to pay back with interests so the bank will be making money by just loaning people money. That is why the banks owners get so rich. They will loan out money to a lot of people and they will put a high interest. When they get the money back, they will earn money without even doing any work.
What do banks do with the money not held in reserve?
Loan it out to people, because they'll make more money by lending than by saving.
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.
Why is a bondholder similar to a bank?
Bondholders loan money to bond issuers just as banks loan money to customers.
What are loan modification loans?
Loan modification leads are names and numbers of people who have loans on their homes that they want to refinance. These are useful to banks so they can call people and make money.
How does bank earn profit?
The way banks earn money is basically a two-step process. First, banks borrow money from other banks as well as from their depositors. The banks then loan that money out to businesses and people, and charge them a higher rate of interest than they are paying on the money. Banks also earn money by charging fees for services they offer.
Can you deposite a payday loan into someone elses account?
Banks will allow deposits into members' accounts. Get your loan then carry the money to their bank if the payday loan people won't do a direct deposit.
What happens to your money in the bank?
your money is problably not kept in the bank but its loaned to other banks and other banks loan to your bank
Why a bondholder is similar to a bank?
Apex :) Bondholders loan money to bond issuers just as banks loan money to customers
What is it called when banks lend money to customers?
It is called a loan.
What do banks do with money not held in the federeal reserve?
They loan it out to others. Banks make more money through lending money than through storing it.
Best explains why a bondholder is similar to a bank?
Bondholders loan money to bond issuers just as banks loan money to customers.
