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2. Sources of commerdial bank funds Banks are an integral financial institution because they act as finandial intermediaries who lend and borrow money for financial

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2. Sources of commerdial bank funds Banks are an integral financial institution because they act as finandial intermediaries who lend and borrow money for financial market participants who could not otherwise gain access to or save a substantial amount of funds. A bank's liabilities and equity are the sources of funds they bring in, while their assets are their uses of the funds. Using the following table, select which type of deposit account would be best suited for the financial market participant in each scenario. funding requests, they have a variety of sources they could borrow money fram. Qsing the following table, select whlch type of borrowing method would be best sulted for the bank in esch of the scenarias: Borrowing Method Scenirte New Horizon Bank has a shortage of funds and wants a temporary source of funds for two days to make up the difference. They want to pay an interest rate that's similar to rates on Treasury securities and don't want to borrow from their Federal Reserve district bank or a source outside of the United States. Frst Giopranty Bank wants to borrow funds to purchase a $22 million bullding for its new branch location and wants to issue long-term securities to cover the financing of the new branch location. Frayer Bank typically has an abundance of funds in its accounts, but out of nowhere, several investors come to the bank looking to borrow a total of $45 million in funds that the bank simply does not have. The bank wants a temporary source of funds for two weeks and doesn't want to borrow from the federal funds market or a source outside of the United States. Diligence Bank has a shortage of funds and wants a temporary source of funds for two days to make up the difference. They have great relationships with banks outside of the United States and want to borrow funds from Deutsche Bank in Germany. True or False: The majority of all United States bank liabilities are made up of deposit accounts. True False

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