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creativ13 [48]
2 years ago
8

Explain reasons for the spread between interest charged and interest earned.

Social Studies
1 answer:
Rainbow [258]2 years ago
4 0

For any business that lends money, the interest rate spread is what the company charges on a loan compared to its cost of money. A bank runs on interest rate spreads, paying a certain rate on savings and CD deposits and making loans at higher rates than it pays to savers.

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