Commercial banks obtain most of their funds from ______.

Question

Quizplus · Accepted Answer

Commercial banks obtain most of their funds from depositors, such as individuals and businesses, who deposit their money into checking, savings, and other types of accounts. This allows the bank to use these funds for loans and investments while still maintaining enough reserves to meet withdrawal demands from depositors. While commercial banks may also raise funds through the sale of securities or from stockholders, these sources are typically secondary to deposits. The government may also provide funds to banks through various programs, but this is not the primary source of funding for commercial banks.

Commercial Banks Obtain Most of Their Funds from ______