February 22, 2017

Homework Help: investing 2-3

Posted by Johnny on Saturday, February 21, 2009 at 11:57pm.

Which of the following best explains why commercial banks assume significant liabilities?
A. All commercial bank deposits are liabilities.
B. The loans commercial banks write can be risky.
C. Banks may pay too much interest on their deposits.
D. Banks may not charge enough interest on their loans to fund
operations and loan default risk.

I don't know about this one. I would think the best answer is B

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