The gap between the interest banks pay depositors and charge borrowers is the:
AMargin
BReserve
CSpread
DYield
Answer & Solution
Correct answer: C. Spread
1. Deposit rates are lower than lending rates.
2. The difference is the spread.
3. It is the bank's profit.
_Source: syllabus Introductory Macroeconomics, Chapter 3, Money and Banking._
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