A bank's largest source of funds is its

Question

Quizplus · Accepted Answer

Nontransaction deposits, such as savings and time deposits, are typically a bank's largest source of funds. These types of deposits tend to be more stable than checking deposits and can provide a steady source of funding for the bank. Borrowing from the Fed and federal funds are also sources of funds for banks, but they tend to be smaller in comparison to nontransaction deposits. Checking deposits can be a significant source of funds, but they tend to be more volatile and subject to changes in customer behavior.

A Bank's Largest Source of Funds Is Its