Question

People have to pay higher interest on loans than the interest they receive on a fixed deposit for the same time period. Why do u think so

Answer 1

Answer:

People pay higher interest rates on loans as some risk is involved there. When a bank pays an interest on deposit, it means that the bank is effectively borrowing at that rate. When the bank lends the same money it needs to have a spread which should be a little higher than the interest paid on the deposit.

Answer 2

hi ,the upper answer is correct write it