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Question Practice

Why do banks charge interest on loans?

Attempt the question, check the explanation, and continue with similar questions to build confidence before exams.

MCQ_SA
CBSE
Class 7
Social Science
Exploring Society India and Be...
Banks and the Magic of Finance
Question Bank

Why do banks charge interest on loans?

Single Answer MCQ
Q-00131327

Why do banks charge interest on loans?

1

To give money away for free

2

To compensate for the risk of loaning money

3

To punish the borrowers

4

To avoid lending money

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