For a bank to make a profit, the interest rate on its deposit liabilities must be higher than the interest rate on its loan receipts.

Name: For a bank to make a profit, the interest rate on its deposit liabilities must be higher than the interest rate on its loan receipts.
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Banks typically make a profit by lending at interest rates that are higher than the interest rates they offer on deposits. This difference is known as the interest rate spread.

For a Bank to Make a Profit, the Interest Rate