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AssignmentMultiple Choice

Banking

Question 1 • CHS Economics

When do banks make money from deposits?

Answer
A
when people withdraw money from their account
B
when banks pay interest to account holders
C
when people add money to their account
D
when banks loan the money to another consumer

Explanation

Banks can use money deposited by customers to make loans to other people. They earn interest on those loans, which can be more than the interest they pay depositors. So the correct choice is “when banks loan the money to another consumer.”

AI-written and checked against the verified answer.

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