Commercial banks

Question

Commercial banks

Quizplus · Accepted Answer

Commercial banks attract deposits by offering to pay interest to their customers. This is one of their primary sources of funds, which they then use to make loans and investments.

Answer: B 
 While commercial banks typically do not sell new issues of stocks, they may sell new issues of bonds or other debt securities to raise additional funds.

Answer: E
 Commercial banks operate on a for-profit basis, so they are not considered non-profit organizations.

Answer: D
 While some banks may offer promotional giveaways like free toasters or gift cards to attract new customers, this is not their primary method of attracting deposits.

Commercial Banks