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  • Basics of Business Online Quiz
  • The primary way banks generate profits is by
Multiple choice

The primary way banks generate profits is by

  1. repossessing vehicles

  2. lending money

  3. foreclosing on homes

  4. charging service fees

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Banks primarily generate profit through the interest spread, which is the difference between the interest they pay to depositors and the interest they earn from lending money to borrowers.

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