Which best explains why banks consider interest on loans to be important? a. interest enables them to control the economy. b. interest them to satisfy customers. c. interest enables them to stockpile money. d. interest them cover business costs.

The correct answer is: D. Interest helps them cover business costs.

Loans and deposits are the basic functions of a bank. When the bank grants a loan it comes with an interest rate (the interest rate is the amount of money charged to the loan). The money that is paid for interests on loans is the most important because it is the way the bank makes money and cover business costs.

A loan is a contract between the borrower and the lender. The borrower receives an amount of money, which he will pay back with interests (price or adicional payment). The bank's profits come from several services and products they offer. The interest the banks charge is another way to increase their profits.

Answer C.

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