A bank's main source of income is the gap between interest charged on …

Question

A bank's main source of income is the gap between interest charged on loans and interest:

Accepted Answer

D. Paid on deposits

1. Loan rates are higher than deposit rates.
2. The difference from deposit interest is the income.
3. This is how banks earn.
_Source: syllabus Understanding Economic Development, Chapter 3, Money and Credit._

Answer

Paid to the RBI

Answer

Paid as tax

Answer

Paid on shares

A bank's main source of income is the gap between interest charged on loans and interest:

Keep practising Indian Economy