Should banks charge interest rate?
The reason why you cannot find any information on this subject is because it defies common sense. You may as well ask “Should restaurants charge for their food?” or “Should car companies charge for their cars?” These statements would seem nonsensical to anyone who hears them. However, because banks seem to be these powerful organizations that are sitting on tons of money that they don’t need, people just don’t understand why banks should charge interest on their money. Why should banks charge interest? For the same reason that a restaurant charges for their food! When there are poor starving people out there, isn’t it unfair for restaurants to charge for food? The restaurants don’t get food supplies for free. Restaurants buy food and then prepare it and then serve it to their customers and charge them for it. In the same way, banks “buy” their money from other people (depositors who are individuals like us or companies). Banks pay depositors for the use of their money (like “rent”). Th
