As a source of funds, small banks rely more heavily on ____, and larger banks rely more heavily on ____.

Question

Quizplus · Accepted Answer

Small banks rely more on local deposits and time deposits as their main source of funds. Meanwhile, larger banks have a broader customer base, which allows them to rely more on savings deposits and short-term borrowings. Foreign deposits are not typically a significant source of funding for either small or large banks.

As a Source of Funds, Small Banks Rely More Heavily