Which of the following is NOT a source of borrowings for a bank?
A)federal funds
B)Eurodollars
C)transaction deposits
D)discount loans

Question

Quizplus · Accepted Answer

Transaction deposits are actually a form of liability for banks, as they represent customers' deposits that the bank uses to make loans or investments. Therefore, transaction deposits cannot be a source of borrowings for a bank. Federal funds, Eurodollars, and discount loans are all legitimate sources of borrowings for a bank.

Which of the Following Is NOT a Source of Borrowings