Question

HLOOO!!!!! I HAVE A DOUBT !!!!!!! CAN U CLEAR IT PLZ!!!!! WHY IS THE BORROWER LIKE TO HAVE A HIGH INTEREST RATE >?

Answer 1

Hola mate...✌️✌️✌️✌️

$\huge \purple {ANSWER}$

Banks charge borrowers a slightly higher interest rate than they pay depositors so they can profit. At the same time, banks compete with each other for both depositors and borrowers. The resulting competition keeps interest rates from all banks within a narrow range of each other.✌️

Answer 2

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Banks charge borrowers a slightly higher interest rate than they pay depositors so they can profit. At the same time, banks compete with each other for both depositors and borrowers. The resulting competition keeps interest rates from all banks within a narrow range of each other.