Question

Why can a bank afford to pay an interest rate on a savings account?

A.
Because the bank is insured by the FDIC
B.
Because the Fed prints more currency when needed
C.
Because the bank puts the money into equity investments
D.
Because the bank lends that money out at a higher interest rate

Answer 1

D

Step-by-step explanation:

Because the bank lends that money out at a higher interest rate

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