What types of investments do banks use to make a profit? Check all that apply.

a. Opening checking accounts

b. Starting new businesses

c. Buying stocks and bonds

d. Buying several properties

e. Issuing loans to all customers

f. Buying the rights to loans

Answer:- c. Buying stocks and bonds, c. Buying stocks and bonds and f. Buying the rights to loans

Banks make money by opening checking accounts and issuing loans to all customers

How do banks make profit?

A bank refers to the monetary institute that receives deposits, offers inspection account services, provides out loans, and offers rudimentary monetary products to their clienteles and businesses.

Banks make income by issuance of loans to clienteles and getting interests from these loans. The bank gets the capital for loans by payments made by clienteles. Banks likewise make profit by charging clienteles money for the maintenance of accounts Banks usually make money by borrowing money from savers and recompensing them with a certain interest rate. The banks will loan the money out to debtors, charging the borrowers a higher interest rate and earning off the interest rate spread.