Question

Bank Sohar declares the profit for the year ended 2019-20. They makes profit:

a.
When bank Sohar asset is less than the liability

b.
When their rate of interest on loan is greater than the deposit rates

c.
When their bank liability is greater than their assets

d.
When their rate of interest on loan is less than the deposit rates​

Answer 1

Option B

Step-by-step explanation:

A bank makes profit when it gets more returns on the loan given as compared to the interest given on the deposited money.

Hence, option B is correct. In case A and C liability is greater than asset and hence this situation does not signify a profitable situation.

Also, option D is just the opposite of option B (profitable situation).