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Money Supply

Rate of inter...

Question

Rate of interest on loans - Rate of interest on deposits is called ___ .

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Solution

Spread is the rate of interest on loans minus the interest on deposits.

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Similar questions

Q. The interest rate on loans is higher than the interest rate that banks offer on deposits.

Q. Read the following statements and choose the correct option.

Assertion (A): The interest rate on loans is higher than a bank's interest rate on deposits.

Reason (R): The bank earns profit out of this margin.

Q. The simple interest on a deposit of ₹2400 is ₹60 more than the interest on a deposit of ₹2000 for a period of 3 years at the same rate percent. Find the rate of interest.

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Q. Why are high interest rates on loans harmful?

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