Major source of income for commercial banks

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Which of the following is the major source of income for commercial banks (except "money center" commercial banks) ?

A. Interest rate spread --- the difference between what banks earn from their assets (mainly interest) and what they pay on their liabilities (again mainly interest).

B. Fee income --- income generated by activities without putting banks' balance sheet at risk.

C. Capital gain --- profit by selling assets at a price higher than their purchase price.

D. None of the above

Reference no: EM131060455

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