Banks compete for funds in capital markets, financial markets, and by trying to get deposits from...
Banks compete for funds in capital markets, financial markets, and by trying to get deposits from customers. Which method is lower in cost for the bank?
- Capital markets
- Deposits
- Financial markets
- They all cost about the same for banks.
Homework Answers
option B : deposites
the deposites is the low cost fund for bank than capital market and financial market, capital market provides cost of interest and financial market involves risk. deposites has low interest rate compared to capital market.
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