The largest source of funds for commercial banks is which of the following?
A)loans
B)Borrowings from the Fed
C)deposits
D)nondeposit liabilities

Question

Quizplus · Accepted Answer

Deposits are the largest source of funds for commercial banks as customers deposit their money in their accounts with the bank, which then uses those funds to make loans and other investments. Loans may be a significant source of income for banks, but they are not the largest source of funds. Borrowings from the Fed and nondeposit liabilities are also sources of funds for banks, but they are not the largest.

The Largest Source of Funds for Commercial Banks Is Which