What type of deposits provide the most stable, long-term source of funds for banks?
A) core deposits
B) purchased deposits
C) both a and b provide the same degree of stability
D) Fed funds purchased

Question

Quizplus · Accepted Answer

Core deposits, which include checking accounts, savings accounts, and time deposits held by local customers, are considered the most stable and long-term source of funds for banks. They are less sensitive to interest rate changes and provide a reliable base of funding.

What Type of Deposits Provide the Most Stable, Long-Term Source