What Is the Difference Between the Average Interest Banks Earn

question 29

Multiple Choice

What is the difference between the average interest banks earn on assets and the average interest rate paid on liabilities?

• A)Spread.
• B)Loss.
• C)Gain.
• D)Change.

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Definitions:

Estoppel

A legal principle that prevents someone from arguing something contrary to a claim they previously made or an action they took.

Authority

The right or power to act or to make a decision.

Third Party

An individual or group aside from the two primarily involved in a situation, agreement, or transaction, often providing additional services or playing a neutral role.

Principal

The primary party involved in a contractual agreement or the original amount of money lent or invested before interest.