BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The sum total of discount and interest from loans.
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aggregate deposits plus aggregate advances.
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total interest earned over total interest expended.
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total interest earned less the non-interest expenses.
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Detailed explanation-1: -Interest rate spread is the interest rate charged by banks on loans to private sector customers minus the interest rate paid by commercial or similar banks for demand, time, or savings deposits. The terms and conditions attached to these rates differ by country, however, limiting their comparability.
Detailed explanation-2: -Net interest rate spread refers to the difference between the interest rate a financial institution pays to depositors and the interest rate it receives from loans. In other words, it is the difference between the borrowing and lending interest rates of the bank.
Detailed explanation-3: -Interest rates on consumer loans are typically quoted as the annual percentage rate (APR). This is the rate of return that lenders demand for the ability to borrow their money. For example, the interest rate on credit cards is quoted as an APR. In our example above, 4% is the APR for the mortgage or borrower.
Detailed explanation-4: -Periodic rate is the rate charged by a lender each period. It can be quoted as a rate per period, say semiannually, per quarter or per month. For example, a bank could charge 1% per month for a credit card loan.