What is the difference between the average interest banks earn on assets and the average interest rate paid on liabilities?
A)Spread.
B)Loss.
C)Gain.
D)Change.

Question

Quizplus · Accepted Answer

The difference between the average interest rate earned on assets and the average interest rate paid on liabilities is commonly referred to as the spread. This spread represents the net interest income earned by the bank and is a key measure of its profitability.

What Is the Difference Between the Average Interest Banks Earn