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How Do Deposit with the bank …

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How Do Deposit with the bank becomes the source of income

Posted by Yallalinga Yallu 3 years, 11 months ago

CBSE > Class 10 > Social Science

1 answers

Rahul Dadwal 3 years, 11 months ago

The deposits with the bank are used by the commercial banks to lend money at a higher rate of interest as compared what is paid to the depositors. The subtraction of interest charged to the borrower and interest paid to the depositor is the net profit which acts as income for the commercial banks

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