What is the job of the banks?
2007-02-16 05:17:09 · 3 answers · asked by Alberto S 2 in Business & Finance ➔ Other - Business & Finance
Banks basicaly hold onto and redistribute money. you deposit money into your account, the bank then holds this money and pays you a small amount of interest because they then loan this money out to other people that need it and make money off of the higher interest rate that they charge them. so basicaly they hold your money, give it to someone else, charge them interest and then give you a small portion of that money they make off of that customer.
2007-02-16 05:24:01 · answer #1 · answered by Speedy 2 · 0⤊ 0⤋
The main purpose of a bank is to maximize profits to its shareholders. They do this by receiving deposits and loaning that same money back out charging higher interest than they pay to the depositors.
And then there are the fees charged to both depositors and people taking out loans for the privilege of being able to pay them interest.
What a racket!
2007-02-16 05:26:17 · answer #2 · answered by lunatic 7 · 0⤊ 0⤋
supposedly they hold your money, give you interest if you leave it there for a time. also-, finding ways to distract money from you, (a.k.a.) CD's. banks are NOT your friends!
2007-02-16 05:25:38 · answer #3 · answered by kspq7652 3 · 0⤊ 0⤋