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How Do Banks Help Us?

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    If we store our money in banks then over a certain period of time the amount of money in the bank increases at a certain rate. This is because banks give loans. The banks takes the money for the loan from our accounts and gives it to the person/s who asked for a loan. They have to return the money in a certain period of time. The amount of money they owe the bank increases gradually at a certain rate. This continuous till the person returns the money to the bank with the interest. Some amount of this interest is added back to our account along with the money borrowed from it. This is how banks help us. They increase the amount of money we have put in it.
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    Suryak95  

    answered 3 months ago

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