What about time deposits, such as certificates of deposit (CDs)? Would banks be able to invest...
What about time deposits, such as certificates of deposit (CDs)? Would banks be able to invest those and earn a profit? If yes, what would that mean for the stability and profitability of the banking system?
Homework Answers
Time deposit is the accepted by the bank and it remains with the bank for certain period of time.
Bank can give this fund in form of loan. It is the main source of income for bank. Difference between interest earned on lending and interest paid to the depositors is profit of bank.
Stability of profit depends on the performance of economy. If economy does not perform well, stability of profit will be comprised.
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What about time deposits, such as certificates of deposit (CDs)?
Would banks be able to invest...
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can someone walk me through all the problems? LESSES 10-6, 108 Certificates of Deposit and Effective...
can someone walk me through all the problems?
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can someone walk me through all the problems?
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