Question

Why does the money in a savings account grow?

A.earns interest plus it earns interest on the internet
B. a bank manager invest in the money in the stock market
C the federal government matches your deposit
D. you don't pay taxes on it ​

Answer 1

Ears interest plus it earns interest on the internet.

Step-by-step explanation:

• We must first understand what actually bank do with the amount invested in savings.
• The bank actually takes your money and provide those money as a loan to customers who need it.

• So, the "bank receives the loan interest from the borrower" and since the bank uses your money, it pays back you the interest obtained from the borrower.
• The money will not be invested in the "stock market" because there involved a market risk and savings accounts are not meant for that.