Question

Banks primarily use the money in savings accounts to
O pay Federal Deposit Insurance Corporation (FDIC) premiums.
O pay for community improvements.
O issue municipal bonds.
provide loans to consumers.

Answer 1

Answer:

provide loans to consumers.

Explanation:

Banks use the money savings accounts to issue loans to customers. The loans issued become assets to the banks.  A Bank make profits by charging higher interest on the loans than the interests they offer on savings. The interest charged on loans is the main source of revenue for the banks.

Banks loan out to businesses and households to finance investments and consumption. Savings accounts become a pool to collect funds that businesses can borrow to finance their expansion. Individuals also borrow for consumption and personal development