Which of the following best characterizes the lending strategy of banks?
A)Banks make most their profits from account fees.
B)Banks lend mostly to large and familiar companies rather than smaller local firms.
C)Banks charge borrowers a slightly lower interest rate than they pay to depositors.
D)Banks lend money both for investment and consumption purposes.

Question

Quizplus · Accepted Answer

Banks lend money for both investment (such as business loans) and consumption (such as personal loans and mortgages) purposes, which is a key aspect of their lending strategy.

Which of the Following Best Characterizes the Lending Strategy of Banks