Single Answer MCQ
Q-00045412
If a bank's interest rate for loans is 10% and it pays 5% on deposits, what is the spread?
1
5%
2
15%
3
10%
4
2%
Answer and Solution
Answer
A. 5%
Solution:
The spread is the difference between the interest charged on loans (10%) and the interest paid on deposits (5%). Thus, the spread is 10% - 5% = 5%.
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