alleryA bank's 'spread' refers to the:
Anet worth on its balance sheet
Btotal value of its deposits
Cdifference between its lending and deposit interest rates
Dcash reserve ratio it maintains
Answer & Solution
Correct answer: C. difference between its lending and deposit interest rates
The 'spread' is the gap between the higher rate banks charge borrowers and the lower rate they pay depositors
it is the bank's profit.
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