A depository institution's profit is derived from the difference between:
a. the interest rate it receives on loans and the rate it receives on investments in government securities.
b. the interest rate it pays on deposits and the rate it receives on loans.
c. its primary deposit and its derivative deposit.
d. its assets and its liabilities.
e. the interest rate it receives on domestic loans and the rate it receives on Eurodollar loans.
Question 2
A price floor set below the equilibrium price causes quantity supplied to exceed quantity demanded.
a. True
b. False
Indicate whether the statement is true or false
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