Economics · Banking and Financial Institutions
The net rate of return on loans earned by a financial institution is given by:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1the loan rate of interest minus interest paid on time deposits
- 2the loan rate of interest minus the cost of servicing loans✓
- 3the loan rate of interest minus administered prices
- 4the nominal loan rate of interest
Correct answer
the loan rate of interest minus the cost of servicing loans
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