Bank's make their profits primarily by issuing

Question

Quizplus · Accepted Answer

Banks earn most of their profits through issuing loans, including mortgages, car loans, and commercial loans. Banks charge interest rates on the loans, which generate income for the bank. The difference between the interest rates banks pay to depositors and the rates they charge borrowers is called the net interest margin, which represents the bank's profit. While banks also focus on other revenue streams, such as investments and fees, issuing loans is the primary way they make money.

Bank's Make Their Profits Primarily by Issuing