Which term describes money earned on money saved with a bank?

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Multiple Choice

Which term describes money earned on money saved with a bank?

Explanation:
Interest is the money earned on money saved with a bank. When you deposit funds, the bank pays you interest as a return for keeping your money with them. For example, depositing $1,000 at 2% annual interest would yield about $20 in a year. Profit comes from earnings from selling goods or investments, not a bank deposit. Capital refers to the total amount of money or assets you have to work with, not the earnings on savings. Loss means losing money, which is the opposite of earning interest. So interest is the correct term.

Interest is the money earned on money saved with a bank. When you deposit funds, the bank pays you interest as a return for keeping your money with them. For example, depositing $1,000 at 2% annual interest would yield about $20 in a year. Profit comes from earnings from selling goods or investments, not a bank deposit. Capital refers to the total amount of money or assets you have to work with, not the earnings on savings. Loss means losing money, which is the opposite of earning interest. So interest is the correct term.

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