Question:
Bank pays interest on
Bank pays interest on
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Interest paid is an expense for banks on deposits, not loans.
Updated On: Nov 7, 2025
- Deposits
- Loans
- Both (A) and (B)
- None of these
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The Correct Option is A
Solution and Explanation
Step 1: Banks pay interest to depositors on the money they save with the bank.
Step 2: Banks charge interest on loans, but they do not pay interest to borrowers; instead, they receive it.
Step 3: Therefore, the correct option is (A) Deposits.
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