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Mathematics
Elliana Mcclain
29 June, 15:44
How do banks use deposits?
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Elliana Montes
29 June, 16:00
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As mentioned before, banks basically make money by lending money at rates higher than the cost of the money they lend. More specifically, banks collect interest on loans and interest payments from the debt securities they own, and pay interest on deposits, CDs, and short-term borrowings.
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