Over the past several decades, shrinking interest rate spreads have led banks to turn to fee-based services to generate revenue.

Question

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As interest rate spreads (the difference between the interest rates banks charge borrowers and the rates they pay depositors) have narrowed, banks have increasingly relied on fee-based services, such as account fees, ATM fees, and charges for financial advice, to maintain and grow their revenue streams.

Over the Past Several Decades, Shrinking Interest Rate Spreads Have