The primary source of earnings of commercial banks is income derived from

The correct answer is interest that is receives on money that it has loaned out.

Explanation: The primary source of earnings for commercial banks is income derived from the interest on money that it has loaned out. Banks also earn income from other areas like account fees, but they are not the primary source of earnings.

The primary source of earnings of commercial banks is income derived from the interest collected on loans especially the loans that are extended.

Explanation: When a person borrows money from a bank, the bank makes money off of the interest that they charge to the borrower. Each month when the person makes a payment on their loan, only part of it goes to the principal of the loan and the remainder goes to the bank/lender. When loans are extended, there is more money given to the bank by the borrower.

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