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Business, 15.04.2020 15:52 gandalfhan

A new bank attracts customers by not charging any fees and paying an average of 2 percent on deposits. To ensure
that it will have customers for years to come, the bank is charging 1 percent on loans. What is the bank's financial
outlook?
a. The high interest on deposits and absence of fees will secure new customers and the bank will earn money.
b. The low interest charged on loans will cause the bank to loan too much money and the bank will lose money.
c. The favorable spread between the interest charged and interest earned will cause the bank to earn money.
d. The unfavorable spread between the interest charged and interest earned will cause the bank to lose money.

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