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I don't understand how the bank incurs an expense by accepting a deposit? Is the bank required by some government regulation to do something expensive with the
by colonwqbang 5y ago
I don't understand how the bank incurs an expense by accepting a deposit? Is the bank required by some government regulation to do something expensive with the money?
Or is the "expense" just that the bank's profit would decrease when interest rates on loans go down but those on deposits stay put?
- DangerousPie 5y agoThe banks also have to pay negative interest rates to store money.
- airstrike 5y agoInterest rates are invariably linked to exchange rates. You get to pick one of the two to determine the other (assuming free capital flows)