The extra money charged (from borrowers) or paid (to depositors) by banks is called _______ .

principal

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rate of interest

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interest

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loan

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Solution

The correct option is C interest
The extra money charged (from borrowers) or paid (to depositors) by banks is called interest.

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Q15.The difference between the interest paid to the depositors and the interest charged on the borrower by a bank is called

Interest is the extra money paid by the borrower to the lender. Say true or false.

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