Banks are just like other business. Other business sell gods or services. Banks sell money in the form of loaning and other financial products.They make money on the interest they charge on loans. Loaning money is a riskful business.A bank never really knows if it will get that money back.Therefore,the riskier the loan,the higher the interest rate the bank charges. Bank also charges fees for services like checking and ATM access. Another source of income for banks is investments and securities.
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