1.

How do the deposits with banks become their source of income?

Answer»

Deposits from customers to the bank BECOME a direct source of their capital for busines.Explanation:Once this money is deposited, the bank holds it as capital for its bussiness.The bank then lend this money to other people who WANT loans at an intrest.The intrest from the deposited money now BECOMES the PROFIT of the bank.Through this process, the bank makes the deposited amount its source of income.



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