Economy, asked by nehanaidu100, 6 months ago

banks charge a higher rate of interest on loans or deposits​

Answers

Answered by abhi52329
2

Explanation:

banks charge a higher rate of interest on loans

Answered by harelyquinn
8

Banks borrow money from you in the form of deposits, and interest is what they pay you for the use of the money deposited. They use the money from deposits to fund loans.

Banks charge borrowers a slightly higher interest rate than they pay depositors. The difference is their profit.

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