An important source of short-term funds for commercial banks are ________ which can be resold on the secondary market.
A)negotiable CDs
B)commercial paper
C)mortgage-backed securities
D)municipal bonds

Question

Quizplus · Accepted Answer

Negotiable CDs (Certificates of Deposit) are a common source of short-term funds for commercial banks as they can be sold to other banks and investors on the secondary market. Commercial paper and mortgage-backed securities are also sources of funds, but they may not be as readily resold as negotiable CDs. Municipal bonds are typically not used as a source of short-term funds for commercial banks.

An Important Source of Short-Term Funds for Commercial Banks Are