Question
How are commercial banks are funded? A. customer deposits B. stockholders C. government funding D. local taxes
Answer
4.7
(207 Votes)
Yosef
Elite · Tutor for 8 years
Answer
### A. customer deposits
Explanation
## Step 1: Understand the sources of funding for commercial banks### Identify that commercial banks primarily get their funds from customer deposits, stockholders, government, and sometimes local taxes.## Step 2: Examine each option in the context of common banking practices### Customer deposits (A) are the primary source of funding. Stockholders (B) contribute through equity. Government funding (C) isn't a general source for commercial banks but rather for certain programs. Local taxes (D) are not used to fund commercial banks.