The ability of commercial banks to make profit is restricted by their need to maintain sufficient

Name: The ability of commercial banks to make profit is restricted by their need to maintain sufficient
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Commercial banks need to maintain sufficient liquidity to meet their short-term obligations and customer withdrawals, which can restrict their ability to make profits. Liquidity ensures that banks have enough cash or easily convertible assets to meet their immediate and near-term obligations.

The Ability of Commercial Banks to Make Profit Is Restricted