That is because rates on money will always be higher than interest levels for the deals

That is because rates on money will always be higher than interest levels for the deals

An opportunity price of dropping liquidity and you will notice money would be lower than the expense of the new financial obligation and you may the new appeal expenses. Banking companies always charge more they pay money for liquidity. You to definitely pass on, otherwise difference in these pricing, ‘s the bank’s profit, and so the bank’s price of to invest in money will always be faster as compared to rate it sells for. Continua a leggere