QUESTION 1 The principal assets of commercial banks are investments in financial securities and loans to businesses and consumers. The principal financing for commercial banks comes from customers' deposits and short-term borrowings True False QUESTION 2 Extensive competition and nondifferentiated products result in a relatively low net income to sales, or profit margin, however, need relatively few assets to generate sales True False QUESTIONS The principal sets of electric utility are its capital-intensive generating plants. Thus, property, plant, and equipment dominate the balance sheet Filoctric utilities bave traditionally realized relatively high profit margin to offset their relatively low total met tumover True False