Which size category of banks generally has the largest spread?
A)Small banks
B)Medium-sized banks
C)The 100 largest banks
D)The 10 largest banks

Question

Quizplus · Accepted Answer

Small banks generally have the largest spread because they often face higher costs relative to their larger counterparts and may serve markets with less competition, allowing them to charge higher rates on loans and offer lower rates on deposits.

Which Size Category of Banks Generally Has the Largest Spread