In order for banks to make a profit, they must charge interest rates that are higher than the inflation rate. Why? a. So that the amount of money the bank gets back in the end has a higher real value (purchasing power) than the amount of money they gave out as a loan. b. So that the interest rate does not get too close to zero or below zero, which would make monetary policy impossible. c. Because otherwise the borrower could have borrowed directly from the Fed at the discount rate, bypassing the bank and depriving it of income. d. Because any profit made at or below the inflation rate is heavily taxed by the government