Question

When do customers pay interest to a bank?

1) when maintaining a checking account
2) when encouraging economic growth
3) when opening a savings account
4) when borrowing money

Answer 1

Customers pay interest to a bank when they have a savings account or when they borrow money.

Step-by-step explanation:

Customers pay interest to a bank when they have a savings account or when they borrow money.

A savings account typically pays some interest rate, and the interest is earned on the money deposited into the account. The interest is usually calculated and added to the account balance at regular intervals.

When customers borrow money from a bank, they are charged interest on the amount borrowed. The interest is a fee for using the bank's money, and it is calculated based on the loan amount and the interest rate set by the bank.