Which of the following is an example of a use of funds for the bank? A borrower
ID: 2780687 • Letter: W
Question
Which of the following is an example of a use of funds for the bank?
A borrower repays $1500 of a loan they have received
The bank sells $5,000,000 of T-Bills
None of the responses are uses of funds
A customer withdraws $1000 from their account
The bank issues a $1,000,000 CD
A.A borrower repays $1500 of a loan they have received
B.The bank sells $5,000,000 of T-Bills
C.None of the responses are uses of funds
D.A customer withdraws $1000 from their account
E.The bank issues a $1,000,000 CD
Explanation / Answer
Use of fund in bank means use of fund in making investment to earn return in future. the use of fund includes, Making loan to borrower, making long term and short term investment, withdrawal of deposit by depositor.
A customer withdraws $1000 from their account is an example of a use of funds for the bank.
Option (D) is correct answer.
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