<p>Banks and other financial institutions are businesses.</p>

CC BY-SA 3.0
2016-12-10T11:13:58.507Z
My book doesn't even mention that, thanks.
John Richard
CC BY-SA 3.0
2016-12-10T07:57:37.887Z
2016-12-10T07:57:37.887Z
Giskard
<p>On my book it says that net interest is "The interest domestic businesses pay minus the interest
they receive, plus interest earned from foreigners."</p>

<p>But how can businesses receive interest?</p>

CC BY-SA 3.0
2016-12-10T06:46:15.353Z
Why shouldn't they receive interest? What do you think is preventing it?
410 gone
CC BY-SA 3.0
2016-12-10T11:13:35.450Z
I thought only households receive interest because they deposit their savings in financial institutions.  Thats why im confused. I mean, for example, does Pepsi receive interest or is it only banks?
John Richard
CC BY-SA 3.0
2016-12-11T11:11:31.483Z
Where do you think businesses deposit their cash?
410 gone
<macroeconomics>
On Net interest
John Richard
# On Net interest

(Asked by: username_0 on 2016-12-10)

On my book it says that net interest is "The interest domestic businesses pay minus the interest
they receive, plus interest earned from foreigners."

But how can businesses receive interest?

**Tags:** macroeconomics

> **Comments:**
> **username_1**: Why shouldn't they receive interest? What do you think is preventing it?  
> **username_0**: I thought only households receive interest because they deposit their savings in financial institutions.  Thats why im confused. I mean, for example, does Pepsi receive interest or is it only banks?  
> **username_1**: Where do you think businesses deposit their cash?  

---

## 1 answers

### Answer by username_2 on 2016-12-10. Score: 1

Banks and other financial institutions are businesses.

> **Comments:**
> **username_0**: My book doesn't even mention that, thanks.  

---

