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Home › Bihar Board Class 12 (Arts) › Economics › Money and Banking › How do commercial banks earn their profit?

How do commercial banks earn their profit?

ABy printing money
BBy earning the spread
CBy fixing the CRR
DBy setting repo rates
Answer & Solution
Correct answer: B. By earning the spread
The interest paid to depositors is lower than that charged from borrowers, and the gap is the bank's profit.
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