Answer:
Truth
Step-by-step explanation:
A commercial bank's core business is to sell credit. They accept customer's deposits at low interest. The banks retain only a modest percentage of the deposits to cater for withdrawals. A significant portion of the deposits is used to extend loans to other customers at a higher interest rate.
The difference in the interest rate the banks offer for deposits and the interest it charges for loans(spread) constitutes profits for the banks. The bigger the spread, and the more it lends out, the more profits a bank makes.