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Sources of fund?

There are many sources of funds that people can get. Banks offer loans and mutual funds, and people get paid from working.


What are the Sources and uses of funds in banks?

Deposits as main source of Funds and Loans as main uses of funds in Bank.


When people invest in mutual funds they are making loans to banks and their investments are insured by the FDIC True or False?

True. When people invest in mutual funds they are making loans to banks and their investments are insured by the FDIC.


What are the interest rates that the federal reserve bank charge on loans they make to commercial banks and thrifts are called what?

Federal Funds Rate


What is The market for overnight loans between commercial banks known as?

The federal funds market


The interest rate banks charge each other on overnight loans?

Federal Funds Rate


When banks make loans the money supply increases or decreases?

When banks make loans, the money supply increases, since the people who receive these loans will have more money.


What are the functions of Co operative Banks?

1. mobilization of funds from their members. 2. advance loans to the members


Banks cannot use your money to make loans to people or to make investments.?

Banks typically use deposited funds to make loans and investments, which is a fundamental part of their business model. This process, known as fractional reserve banking, allows banks to lend out a portion of deposited money while keeping a fraction in reserve for withdrawals. However, regulations exist to ensure that banks maintain sufficient reserves and manage risks appropriately. Thus, while banks do use your money to facilitate loans and investments, they are required to adhere to strict guidelines to protect depositors' interests.


Do commercial banks make loans?

Yes, it is a major source of a banks income.


What is the name of interest rate that banks charge one another for very short term loans?

Federal funds rate.


Where the commercial banks obtain most of their funds?

Commercial banks primarily obtain their funds through customer deposits, including savings accounts, checking accounts, and certificates of deposit. Additionally, they may raise funds through interbank loans, issuing bonds, and obtaining lines of credit from other financial institutions. These deposits and borrowed funds are then used to provide loans and other financial services, generating interest income.