When can a commercial bank earn profit?
A. When the lending rate(interest on loans) is higher than the rate of interest that banks give on deposits
B. When the lending rate(interest on loans) is lower than the rate of interest that banks give on deposits
C. When the lending rate(interest on loans) and the rate of interest on deposits are same
D. In all these scenarios
Answer:A
When can a commercial bank earn profit?
A. When the lending rate(interest on loans) is higher than the rate of interest that banks give on deposits B. When the lending rate(interest on loans) is lower than the rate of interest that banks give on deposits C. When the lending rate(interest on loans) and the rate of interest on deposits are same D. In all these scenarios