What accounts for the difference between the two curves shown in the figure? Bank interest 12% rates 10% Interest rate on loans 8% 6% 4% 2% Interestte on deposits 0% 1990 1995 2000 2005 2010 2015 2018 Click or tap a choice to answer the question. banks' need to cover expenses and make a profit the risk depositors run of losing their money to bank failure federal regulations regarding interest paid and interest charged federal taxes on bank income from loans

ECON MACRO
5th Edition
ISBN:9781337000529
Author:William A. McEachern
Publisher:William A. McEachern
Chapter15: Monetary Theory And Policy
Section: Chapter Questions
Problem 1.1P
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What accounts for the difference between the two curves shown in the figure?
Bank interest 12%
rates
10%
Interest rate on loans
8%
6%
4%
2%
Interestste on deposits
0%
1990
1995
2000
2005
2010
2015 2018
Click or tap a choice to answer the question.
banks' need to cover expenses and make a
profit
the risk depositors run of losing their money
to bank failure
federal regulations regarding interest paid
and interest charged
federal taxes on bank income from loans
Transcribed Image Text:What accounts for the difference between the two curves shown in the figure? Bank interest 12% rates 10% Interest rate on loans 8% 6% 4% 2% Interestste on deposits 0% 1990 1995 2000 2005 2010 2015 2018 Click or tap a choice to answer the question. banks' need to cover expenses and make a profit the risk depositors run of losing their money to bank failure federal regulations regarding interest paid and interest charged federal taxes on bank income from loans
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