2-8 Money center banks rely more heavily on wholesale and borrowed funds as sources of liability funding than do community banks.

Question

Quizplus · Accepted Answer

Money center banks typically have larger balance sheets and serve a broader geographic area, which requires them to rely more on wholesale and borrowed funds to support their operations. Community banks, on the other hand, often rely more on traditional retail deposits as a source of funding.

2-8 Money Center Banks Rely More Heavily on Wholesale and Borrowed