In general, banks would prefer to acquire funds quickly by ________ rather than ________.

Question

Quizplus · Accepted Answer

Banks would prefer to borrow from the Bank of Canada since it is a quicker and more convenient way of acquiring funds compared to reducing loans, which can be a slow process. Selling securities can also be a viable option, but it is often a last resort and is typically only done when the bank needs to raise a significant amount of funds quickly. "Calling in" loans can be disruptive to the borrowers and can damage the bank's reputation, so it is not a preferred method of acquiring funds.

In General, Banks Would Prefer to Acquire Funds Quickly by ________