Which of the following is true?
A)None of these
B)Commercial banks are the only legal type of financial intermediary.
C)Banks are prohibited by law from earning a profit.
D)It is customary to pay a higher interest rate on a loan than you would receive on your savings account from the same bank.
E)A bank earns a profit by lending at a lower rate than it pays its depositors.

Question

Quizplus · Accepted Answer

It is customary for banks to pay a higher interest rate on loans than they would pay on savings accounts. Banks make a profit by charging borrowers a higher interest rate than they pay to depositors.

Which of the Following Is True