Question
13. Which of the following statements concerning a commercial banks balance sheet is FALSE? (A) Its primary source of funds is deposits, but core deposits
13. Which of the following statements concerning a commercial banks balance sheet is FALSE? (A) Its primary source of funds is deposits, but core deposits cannot be relied upon to raise money on short notice. (B) Bank capital is used to absorb losses from bad loans and poor investments without those losses threatening deposit accounts, most of which are federally insured. (C) A banks loan portfolio represents its principal source of income, but is also the riskiest assets on its books. (D) Banks would never hold cash assets other than its vault cash, which it uses to meet daily net deposit with
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