financial institutions attract funds from savers by offering ____________ on savings.Question 36Select one:a.profitsb.interestc.revenuesd.benefits

Break Down the Problem

1. Identify the purpose of financial institutions in relation to savers.
2. Determine the correct terminology commonly used to describe the compensation for saving money.

Relevant Concepts

• Financial institutions, such as banks, often provide a return to savers as an incentive to deposit their money.
• The most common term used in this context is "interest."

Analysis and Detail

• The term "profits" refers to earnings from business operations, not directly from savings.
• "Revenues" is a broader term related to income from all sources, not specifically for savers.
• "Benefits" can refer to advantages in a general sense but doesn't specifically apply to financial gains from savings.

Verify and Summarize

• The only term that accurately reflects the return given to savers for their deposits is "interest."

Final Answer

b. interest