Commercial banks obtain most of their funds from ________.

Question

Quizplus · Accepted Answer

Commercial banks primarily fund their operations through deposits made by individuals, businesses, and other organizations. This is typically the largest source of funds for banks. While banks may also obtain funds from other sources such as the sale of securities, these sources are typically secondary to deposits. The government may also provide funds to commercial banks in certain circumstances, such as during times of financial crisis, but this is not a reliable or consistent source of funding. Stockholders may provide funds to banks through the purchase of shares, but this is also not typically a primary source of funding for most commercial banks.

Commercial Banks Obtain Most of Their Funds from ________