Banks earn a profit by
A) charging an interest rate on their depositors' accounts.
B) making loans at a higher interest rate than the rates that they offer on their deposits.
C) not paying interest on their reserves.
D) making loans at a lower interest rate than the rate that they offer on their deposits.
E) keeping as many reserves on hand as possible.
B
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Revenue for the state governments in the United States comes primarily from income taxes
a. True b. False
What is the difference between standard deviation and value at risk? Consider the difference between purchasing a one-year bank CD compared with purchasing a homeowner's insurance policy. Which scenario do you believe is more likely to consider value at risk over standard deviation? Explain.
What will be an ideal response?
The quantity of imports will decrease when there is
A) an increase in the real exchange rate. B) a reduction in domestic output. C) a reduction in foreign output. D) all of the above E) none of the above
What were some of the key features in terms of fiscal policy of the Stability and Growth Pact signed in 1997 by would-be members of the Euro?
What will be an ideal response?