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2 June, 21:38

Why is there a difference between interest charged and interest earned? A) Banks are non-profit institutions. B) Banks are profit-making institutions. C) Banks must pay more than they receive. D) There is no difference between interest charged and interest earned.

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  1. 2 June, 22:35
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    The correct answer is choice b.

    Banks are profit-making institutions. Their purpose is to make a profit for their owners or stockholders. They need to charge more interest on the money that they loan out than what they pay on savings accounts so that there is a profit for them.
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