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Question

The interest charged by the bank from its borrowers is _____ then the interest it pays to its depositors.

A
the same
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B
higher
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C
lower
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D
unspecified
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Solution

The correct option is B higher
The interest charged by the bank from its borrowers is higher than the interest it pays to its depositors.
The difference between the interest paid by the bank to its depositors and interest paid by the borrowers to the bank is the income of the bank.

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