A Depository Institution's Profit Is Derived from the Difference Between

question 71

Multiple Choice

A depository institution's profit is derived from the difference between the

• A) interest rate it receives on loans and the rate it receives on investments in government securities.
• B) interest rate it pays on deposits and the rate it receives on loans.
• C) difference between its total reserves and its required reserves.
• D) difference between its assets and its liabilities.
• E) interest rate it receives on domestic loans and the rate it receives on foreign loans.

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