49) Which is true regarding sources of commercial bank funds today? A) Nontransa

Question

49) Which is true regarding sources of commercial bank funds today? A) Nontransaction deposits are much more important than transaction deposits to make up the largest part of commercial banks today, and these nontransaction deposits the assets of commercial banks today B) Equity C) Transaction deposit capital today make up most of the assets of most commercial banks today s are much more important than nontransaction deposits to commercial banks today, and these commercial banks today transaction deposits make up the largest part of D) Foreign depos its make up most of the assets of most commercial banks todav. to obtain a sub-prime loan, for the economy and stimulate the economy to increase production for the economy if the economy is able to control inflation, but will not be 50) Making credit casily available, as in the case of making it very easy B) will be good good if inflation occurs C) is always beneficial for the economy, especially if such loans are constantly available P) can be very dangerous for an economy and lead to economic collapse

Explanation / Answer

49. A) Nontransaction deposits are much more important than transaction deposits to commercial banks today, and these nontransaction deposits make up the largest part of the assets of commercial bank today

In 2009, Nontransaction deposits including savings, and time deposit accounted for more than half of all commercial bank liabilities in US.

50. D) can be very dangerous for an economy and lead to economic collapse

A subprime loan is a type of loan offered at a rate above prime to individuals who do not qualify for prime rate loans. Quite often, subprime borrowers are turned away from traditional lenders because of their low credit ratings or other factors that suggest they have a reasonable chance of defaulting on the debt repayment.Paying off subprime loans difficult for most low-income subprime loan borrowers as it did in the late 2000s. In 2007, high rates of subprime mortgages began to default, and ultimately this subprime meltdown was a significant contributor to the financial crisis of the late 2000s.

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