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Banks are an integral financial institution because they act as financial intermediaries who lend and borrow money for financial market participa who could not othenwise

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Banks are an integral financial institution because they act as financial intermediaries who lend and borrow money for financial market participa who could not othenwise gain access to or save a substantial amount of funds. A bank's habilities and equity are the sources of funds they bring 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 financlal market participant in each scenariot Fow Financial Bank wants to temporarily sell $100 million worth of its Treasury bills, with an agreement to buy them back in one year for $102 milion. 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. First Guaranty 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. New Morizon 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. True or False: The majority of all United States bank liabilities are made up of deposit accounts. True False

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