Question

PLEASE TRY

Why would a bank give you only 3% interest on money in your savings account while charging you 5% interest for a loan?

a.The focus of banks is making money, so they increase interest rates on loans to make more money.

b.Since interest on a deposit is compounded, banks are actually paying more in interest to the depositors.

c.Government regulations force banks to charge higher interest rates on loans than they do on savings

d.Banks are businesses and need to make money or cover overhead expenses.

Answer 1

Step-by-step explanation:

banks’ need to cover expenses and make a profit

Answer 2

D. Sounds like the most reasonable one