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BANKING AND MONETARY POLICY — Economics STD 12 Commerce — Question

Gujarat BoardEnglish MediumSTD 12 CommerceEconomicsBANKING AND MONETARY POLICY1 Mark
MCQ
When can a commercial bank earn profit?
  • ✓
    When the lending rate$($interest on loans$)$ is higher than the rate of interest that banks give on deposits
  • B
    When the lending rate$($interest on loans$)$ is lower than the rate of interest that banks give on deposits
  • C
    When the lending rate$($interest on loans$)$ and the rate of interest on deposits are same
  • D
    In all these scenarios
✓

Answer

Correct option: A.
When the lending rate$($interest on loans$)$ is higher than the rate of interest that banks give on deposits

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