Question
Which of the following statements concerning a commercial bank'sbalance sheet is FALSE?(A) Its primary source of funds is deposits, but core deposits cannotbe relied upon
Which of the following statements concerning a commercial bank'sbalance sheet is FALSE?(A) Its primary source of funds is deposits, but core deposits cannotbe relied upon to raise money on short notice.(B) Bank capital is used to absorb losses from bad loans and poorinvestments without those losses threatening deposit accounts,most of which are federally insured.(C) A bank's 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 withdrawals, if theirreserve requirements did not mandate it
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