Banks maintain customer account for both ________ and __________.
Banks maintain customer accounts for both Deposits and loans.
Deposits refer to the money that customers place into their bank accounts, such as savings accounts or checking accounts.
Banks use these funds to lend out to other customers who need loans. In exchange for depositing their money, customers may earn interest on their balances.
Loans, on the other hand, refer to the money that customers borrow from banks.
Banks offer various types of loans, including personal loans, mortgages, and business loans, among others. Customers are typically required to pay back the loan with interest over a set period of time.
By maintaining both deposits and loans, banks are able to generate revenue from the interest earned on loans, while also providing a safe place for customers to store their money and earn interest on their deposits.