Banks make the most money and take the most risk with an interest rate of: 5 percent. 10 percent. 15 percent 18 percent.

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Business

Lawrence

24 January, 17:17

Banks make the most money and take the most risk with an interest rate of: 5 percent. 10 percent. 15 percent 18 percent.

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Xzavier Estes · Answer 1

The answer is 18 percent

The larger the interest rate is, the most money the bank will make, since the debtor will give more money to the bank

But, as bank's projected profit increase, they also take more risk of the debtor not be able to pay his debt back to the bank