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 g) buying the rights to loans

The types of investments that banks use to make a profit are:
a. Buying stocks and bonds.
b. Buying several properties.
c. Buying the rights to loans.

Explanation:

Commercial banks are profit-oriented organizations that use diverse ways to gain benefits. The primary source banks can use to make profits is lending money and other advances at higher rates compared to the cost of them.

By buying stocks and bonds, as well as properties and the rights to loans, banks can ensure that they can gain profit from their customers in the future. For example, they provide mortgages with an interest rate comprising the cost of banks’ services. The picture below shows how banks make profits in detail.

How banks make a profit infographics.
How banks make profits (www.marketingmind.in)
Answer by Academic.tip's expert
An answer to this question is provided by one of our experts who specializes in business & economics. Let us know how much you liked it and give it a rating.

Cite this page

Select a citation style:

References

Academic.Tips. (2022) '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 g) buying the rights to loans'. 30 January.

Reference

Academic.Tips. (2022, January 30). 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 g) buying the rights to loans. https://academic.tips/question/what-types-of-investments-do-banks-use-to-make-a-profit/

References

Academic.Tips. 2022. "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 g) buying the rights to loans." January 30, 2022. https://academic.tips/question/what-types-of-investments-do-banks-use-to-make-a-profit/.

1. Academic.Tips. "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 g) buying the rights to loans." January 30, 2022. https://academic.tips/question/what-types-of-investments-do-banks-use-to-make-a-profit/.


Bibliography


Academic.Tips. "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 g) buying the rights to loans." January 30, 2022. https://academic.tips/question/what-types-of-investments-do-banks-use-to-make-a-profit/.

Work Cited

"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 g) buying the rights to loans." Academic.Tips, 30 Jan. 2022, academic.tips/question/what-types-of-investments-do-banks-use-to-make-a-profit/.

Copy