Banks pay interest on deposits and lend that money to borrowers at higher rates. This rate difference is called:

Name: Banks pay interest on deposits and lend that money to borrowers at higher rates. This rate difference is called:
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The rate difference between the interest paid on deposits and the interest charged on loans is known as the spread. This difference allows banks to earn a profit by lending out deposited funds at a higher interest rate than they are paying out in interest.

Banks Pay Interest on Deposits and Lend That Money to Borrowers