Quiz # 2
Dec 29, 2021 12:00 AM
Dec 31, 2021 11:59 PM
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The strong financial system helps in ---------- the spread between banks lending and borrowing rate.
Spreads in Lending
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.