Practicing Success

Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Money and Banking

Question:

The interest rate paid by the banks to depositors is _______ than the rate charged from the borrowers.

Which of the following options suits best in the above blank?

Options:

Lower

Higher

Equal

Sometimes higher, sometimes lower

Correct Answer:

Lower

Explanation:

The interest rate paid by the banks to depositors is lower than the rate charged from the borrowers.