b) Spread is one of the category of financial ratios of banks which is under profitability. The spread of a bank is calculated as follows:- X - interest expense Total assets i) Name the item X. Identify and give examples of the main banking products that contribute to item X Explain the effect on profitability of a bank if item X decreases, 11) 1. * 1. Following statements is true regarding the interest rate EXCEPT for: When the government expenditure is more than the government income, this will lead to a decrease in the interest rate. An increase in the economic growth will put an upward pressure on the interest rate due to the increase in the demand for loans. O When the inflation rate is high, this will lead to an increase in the interest rate. O An increase in the money supply by the government will put a downward pressure on the interest rate