Banks make their profits mainly by

Name: Banks make their profits mainly by
Brand: Quizplus
Rating: 4.8 (47 reviews)

Question

Quizplus · Accepted Answer

Banks make their profits mainly by earning more interest on loans than they pay out on deposits. This is also known as net interest income. Banks charge a higher interest rate on loans than they pay on deposits, and the difference is their net interest income, which is a significant source of profit for banks. This is why banks are often referred to as "interest-rate spread institutions".

Banks Make Their Profits Mainly by