Financial Mathematics Watch

student/s11059028
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#1
Report Thread starter 7 years ago
#1
how could a bank pay more than cash rate of say, 0.5% and still make a profit? Any one has any ideas????.......
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Quady
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Report 7 years ago
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By loaning it out at more than the rate they pay for it...?

What has the BoE rate got to do with anything?

Bank borrows from me at 3%, lends that money out to a credit card customer at 27%, they make 24% profit.

How is that a difficult concept?
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