Where do banks get their money, and what do they do with the money once they have it? How do banks make a profit?

What will be an ideal response?

Banks receive their funds from depositors-that is, people who wish to save money by putting in a bank. Banks collect fees from these depositors for certain services they provide along with the depositors' accounts, and they pay interest to depositors for the use of their money. The money collected from depositors is then lent to consumers and businesses. Consumers will take out loans such as mortgages, revolving credit card debt, car loans, and student loans. Businesses will borrow from banks to expand their operations. Banks charge a higher interest rate on these loans than they pay to the depositors, and thus make money on the difference in interest rates.