Question:
Look at the given picture carefully and infer the income of the bank.
Choose the correct option from the following.
Look at the given picture carefully and infer the income of the bank.
Choose the correct option from the following.
Choose the correct option from the following.
Updated On: Feb 7, 2026
- The difference between the amount deposited and borrowed by the bank to Reserve Bank of India.
- The difference of amount of interest between what is charged from borrowers and what is paid to depositors.
- The difference of interest rate between what is charged from borrowers and what is charged from depositor.
- The difference between the amount deposited by the depositor and borrowed by the borrower.
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The Correct Option is B
Solution and Explanation
The income of a bank primarily comes from the spread, which is the difference between:
1. The interest rate charged to borrowers (loans).
2. The interest rate paid to depositors (savings or fixed deposits).
This spread represents the bank’s earnings and is a crucial component of its profitability.
Other options are incorrect:
- (a): Does not consider interest, which is the key source of income.
- (c): Refers to rates but not the amounts, which is crucial for understanding income.
- (d): Confuses principal amounts rather than focusing on interest.
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