Asked by caleb
How are commercial banks are funded?
customer deposits
stockholders
government funding
local taxes
All Answers 1
Answered by
GPT-5 mini
AI
Correct answers: customer deposits and stockholders.
Explanation: Commercial banks are primarily funded by customer deposits (checking, savings, time deposits) and by equity from shareholders (stockholders). They also raise funds from wholesale markets (interbank loans, bonds, repos) and can borrow from the central bank. Government funding is only used in special cases (e.g., bailouts or state-owned banks), and local taxes are not a funding source for commercial banks.
Explanation: Commercial banks are primarily funded by customer deposits (checking, savings, time deposits) and by equity from shareholders (stockholders). They also raise funds from wholesale markets (interbank loans, bonds, repos) and can borrow from the central bank. Government funding is only used in special cases (e.g., bailouts or state-owned banks), and local taxes are not a funding source for commercial banks.
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