Which of the Following Is True of Bank Spread

question 20

Multiple Choice

Which of the following is true of bank spread?

• A)The more vigorous the competition among banks, the smaller will be spread between the interest rates on loans and deposits.
• B)The larger the banks that are competing with each other, the larger will be spread between the interest rates on loans and deposits.
• C)The spread between the interest rates on loans and deposits will be much narrower in banks in rural areas than the banks in big cities.
• D)The lower the number of banks in a city, the smaller will be the spread between the banks' interest rates on loans and deposits.

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Definitions:

Conceptual Estimate

A conceptual estimate is an early, approximate evaluation of project costs, based on general project parameters and experience, before detailed plans are made.

Line Estimate

An estimation technique that involves itemizing project costs line by line for detailed financial planning.

Milestone Schedule

A timeline that outlines significant events or achievements that are to be completed by specific dates within a project's lifecycle.

Marketplace

A platform or environment where buyers and sellers come together to exchange goods, services, or information.