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7 September, 00:26

Which is the correct order of entities who benefit when banks make a profit?

employees, shareholders, and the economy

shareholders, shoppers, and the economy

employees, companies, and the economy

shareholders, companies, and the economy

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  1. 7 September, 01:06
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    The most logical order would be the employees, shareholders, and the economy. In order to profit, banks would lend money at interest. The higher the interest rates, the better they earn. Obviously, the employees, at the frontline, will be the first to get their earnings because the bank has to pay them their wages. The next ones who will earn would be the shareholders through dividends and profits through their earnings per share (if the bank is thriving). Lastly, the economy will also do well because one of the indicators as to whether an economy will go up would be interest rates. The higher the interest rates go, the less people can borrow, but the higher the currency will go.
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