Which of the following is considered an important source of funds for large banks?
A)Repurchase agreements
B)Fed funds
C)CDs
D)All of the above are important sources of funds for large banks.

Question

Quizplus · Accepted Answer

All of the options listed (repurchase agreements, Fed funds, and CDs) are important sources of funds for large banks. Repurchase agreements involve the sale of securities with an agreement to repurchase them at a later date, providing short-term funding for banks. Fed funds are overnight loans between banks to meet reserve requirements, while CDs (certificate of deposit) are deposits that customers make with banks for a fixed period of time, providing a source of funding for the bank.

Which of the Following Is Considered an Important Source of Funds