Which of the following is a primary source of funds for commercial banks?

Which of the following is a primary source of funds for commercial banks?

Step 1: Understand what a commercial bank is. A commercial bank is a financial institution that accepts deposits from customers and provides loans.
Step 2: Identify what 'primary source of funds' means. This refers to the main way that banks get the money they use to lend to others.
Step 3: Consider the options for sources of funds. Common sources include customer deposits, loans from other banks, and investments.
Step 4: Recognize that customer deposits are the most significant source of funds for banks. This is because banks use the money deposited by customers to provide loans to other customers.
Step 5: Conclude that deposits from customers are indeed a primary source of funds for commercial banks.

No concepts available.