why does the money in a savings account grow? A.earns interest plus it earns interest on the internet B. a bank manager invest in the money in the stock market C the federal government matches your deposit D. you don't pay taxes on it
Ears interest plus it earns interest on the internet.
Explanation:
We must first understand what actually bank do with the amount invested in savings.
The bank actually takes your money and provide those money as a loan to customers who need it.
So, the "bank receives the loan interest from the borrower" and since the bank uses your money, it pays back you the interest obtained from the borrower.
The money will not be invested in the "stock market" because there involved a market risk and savings accounts are not meant for that.
