Their product just happens to be money. Other businesses sell widgets or services; mone sell money — in the form of loans, certificates of deposit CDs and other financial products. They make money on the interest they charge on loans because that interest monney higher than the whaat they pay on depositors’ accounts. The interest rate a bank charges its borrowers depends on both the number of people who want what banks can do to make more money borrow and the amount of money the bank has available to lend. As we mentioned in the previous section, the amount available to lend also depends upon the reserve requirement the Federal Reserve Board has set. At the same time, it may also be affected by the funds ratewhich is the interest rate that banks charge each other for short-term loans to meet their reserve requirements.