A bank can make profit by: a)borrowing money from the government at 0% interest. b)giving you a particular interest return on your savings and then loaning out the same money at a lower rate of interest. c)giving you a particular interest return on your savings and then loaning out the same money at a higher rate of interest. d)storing and locking away all the deposits made by consumers.
A bank can make profit by: a)borrowing money from the government at 0% interest. b)giving you a particular interest return on your savings and then loaning out the same money at a lower rate of interest. c)giving you a particular interest return on your savings and then loaning out the same money at a higher rate of interest. d)storing and locking away all the deposits made by consumers.
Chapter16: Monetary Policy
Section: Chapter Questions
Problem 2SQ
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A bank can make profit by: a)borrowing money from the government at 0% interest. b)giving you a particular interest return on your savings and then loaning out the same money at a lower rate of interest.
c)giving you a particular interest return on your savings and then loaning out the same money at a higher rate of interest.
d)storing and locking away all the deposits made by consumers.
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