Obviously, it’s not because your bank is feeling charitable. The kind of money that leads to the obscene Wall Street bonuses we so often hear about.But banks make money even when they’re not involved in Wall Street’s multinational investment deals and billion-dollar hedge funds.I understand this is off subject nevertheless I simply had to ask. Banks make money because they loan out at least 10 times more money than what they have.Tags: Beauty Is Truth Truth Beauty EssayUsing Direct Speech In EssaysEssays Of Dr. Jose RizalHow To Do A Research Paper FastA Cruel Thesis Of A Angel Mp3Essay On National Integration And Cohesion In PakistanCollege Term Paper OutlineEssay Improve English ReadingEssay Report Writing TacticsUchicago College Essay Prompts
The amount of interest the banks collect on the loans is greater than the amount of interest they pay to customers with savings accounts—and the difference is the banks’ profit.
Your bank may have paid you $150 in a year’s time but they earned hundreds or thousands more from the interest on loans (made possible with your money).
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It is not our partner’s responsibility to ensure all posts or questions are answered. Banks can print around 10x more than what you deposit to lend out!! for them If your 10k makes 1% and they use it to mortgage you at 3% in a year…they just made a profit of $2900 or 29% on YOUR money!! Does running a blog such as this take a massive amount work?
In reality, commercial banks literally create money when they make loans.