Banks earn a profit on the difference between:

CA Foundation · Business Economics · MTP · September 2024
Banks earn a profit on the difference between:
(A) A. Interest charged to depositors and interest offered to borrowers.
(B) B. Interest charged on loans and interest paid on deposits.
(C) C. Deposit and loan balances
(D) D. Liabilities and deposits

Suggested Answer and Working Notes:

Correct Answer: Option (B)

B. Interest charged on loans and interest paid on deposits.

Topics: Money Market

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