Final answer:
Interest is the income earned from lending savings, capital is impacted by interest and profit, and dividends are payments from company profits.
Explanation:
Interest is the income earned from lending savings to others, usually quoted as a percentage of the principal. For example, receiving [tex]$50 on a $[/tex]1,000 loan is a 5% interest rate.
Capital is directly impacted by interest and profit. Interest is the fee paid by a borrower for using assets, while profit is the accumulation of capital driving economic activity.
Dividends are payments to shareholders from a company's profits, not based on the amount of money the bank holds.
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