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प्रश्न
Banks charge a higher interest rate on loans than what they offer on ______.
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उत्तर
Banks charge a higher interest rate on loans than what they offer on deposits.
Explanation:
Banks operate by receiving money from savers at a low interest rate and lending it to borrowers at a higher interest rate. The difference between these two rates, known as the net interest margin, covers the bank’s operational costs and creates profits.
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