Evaluate the following statement: Banks use deposits to make consumer loans to households and commercial loans to businesses. B

Question

3 years ago

7

Evaluate the following statement: Banks use deposits to make consumer loans to households and commercial loans to businesses. B

anks will loan out every penny of their deposits in order to make a profit.
A. True. Any money that is left over after a bank loans money to businesses and households will be loaned to other banks.
B. True. Deposits that sit in a bank as vault cash earn no interest.
C. False. Banks must hold a fraction of their deposits as vault cash or with the Federal Reserve.
D. False. In reality, banks are rarely able to find borrowers for all of their deposits.

Business

1 answer:

Sav [38] · Answer 1 · 2022-01-08T13:33:56+03:00

Sav [38]3 years ago

3 0

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Evaluate the following​ statement: Banks use deposits to make consumer loans to households and commercial loans to businesses. B

Evaluate the following statement: Banks use deposits to make consumer loans to households and commercial loans to businesses. B