The is the difference between the interest rate a bank earns on a loan and the interest rate it pays.
Question
The is the difference between the interest rate a bank earns on a loan and the interest rate it pays.
🧐 Not the exact question you are looking for?Go ask a question
Solution 1
The difference between the interest rate a bank earns on a loan and the interest rate it pays is known as the Net Interest Margin (NIM). Here's how it works:
- Banks earn interest when they lend money to borrowers. This is often in the form of loans, such as home loans, personal loans, and busines Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study prob
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solve study problem.
Knowee AI StudyGPT is a powerful AI-powered study tool designed to help you to solv
Similar Questions
The is the difference between the interest rate a bank earns on a loan and the interest rate it pays.
What is the difference between the principal amount on a loan and the interest amount on a loan?
A bank pays back a sum of ₹ 12,000 to Sam who had invested ₹ 10,000for 4 years. Find the rate of interest
The primary advantage of _________blank is that the rate of interest is usually lower than that for a commercial bank loan.
A company’s bank requires a compensating balance of 20% on a $100,000 loan. If the stated interest on the loan is 7%, what is the effective cost of the loan?
1/3