The correct option is B Collecting high interest on loans and offering low interest on savings
When banks collect deposits, they pay interest for the savings. Similarly, when banks give loans, they collect interest from the borrowers. The primary source of income for banks is the difference between the interest charged from the borrowers and the interest paid to the depositors. Banks usually collect higher interest from loans than the interest they provide for deposits.
Author: Duncan Muller
Last Updated:
Views: 5894
Rating: 4.9 / 5 (59 voted)
Reviews: 82% of readers found this page helpful
Name: Duncan Muller
Birthday: 1997-01-13
Address: Apt. 505 914 Phillip Crossroad, O'Konborough, NV 62411
Phone: +8555305800947
Job: Construction Agent
Hobby: Shopping, Table tennis, Snowboarding, Rafting, Motor sports, Homebrewing, Taxidermy
Introduction: My name is Duncan Muller, I am a enchanting, good, gentle, modern, tasty, nice, elegant person who loves writing and wants to share my knowledge and understanding with you.