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Loraine Loraine
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Posts: 9128
6 years ago
"Banks make a profit by paying depositors a high rate to attract funds and making loans at a low rate to encourage borrowing." Is the previous statement correct or not?
Textbook 

Essential Foundations of Economics


Edition: 7th
Authors:
Read 228 times
4 Replies
Start by doing what's necessary; then do what's possible; and suddenly you are doing the impossible.
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SydnieSydnie
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6 years ago
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More questions for this book are available here
The statement is incorrect. Banks make a profit if the interest rate they collect on the loans they make exceeds the interest rate they must pay on the deposits they attract.
1

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wrote...
6 years ago
Wow, this is exactly what I needed Grinning Face
Start by doing what's necessary; then do what's possible; and suddenly you are doing the impossible.
wrote...
6 years ago
Don't you love when it works out Wink Face

Glad to help. I will check out your other questions now. I'm feeling confident.
wrote...
A month ago
Thanks!
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