Banks' borrowed funds come mostly from:

Question

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The most common way for banks to borrow funds is by issuing bonds and accepting deposits. This allows them to raise capital which they can then lend out to borrowers at a higher interest rate, earning them a profit. Buying bonds and loans (option A) and buying stocks and selling Treasury bonds (option B) are not common methods for banks to borrow funds. Issuing stocks and buying Treasury bonds (option C) could be a way for banks to raise capital, but it is not as common as issuing bonds and accepting deposits.

Banks' Borrowed Funds Come Mostly From