how do banks earn money?
ANSWER TO THE ABOVE QUESTION Dear anonymous: Banks have their capital and they receive amounts as deposits from customers. they invest the amounts in loans to customers and government securities, shares etc. They get interest from customers who have taken loan. they issue guarantees, letter of credit and earn commission. also they issue demand drafts, telegraphic transfers etc. and charge commission. Banks take processing charges for loans. they make money like this.
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