Which of the following is an example of a source of funds?
A)A customer withdraws $1,000 from his account
B)A borrower repays $1,500 of a loan he had taken
C)A bank increases its Fed funds sold account by $1,000,000
D)A bank purchases $5,000,000 in T-Bills
E)None of the options is a source of funds

Question

Quizplus · Accepted Answer

When a borrower repays a loan, the bank receives funds which can then be used for other purposes, making it a source of funds.

Option A is not a source of funds for the bank, but rather a withdrawal of funds by a customer.

Option C is an increase in the bank's liability to the Federal Reserve, so it is not a source of funds.

Option D is an investment made by the bank, not a source of funds.

Option E is not the correct answer as there is at least one option that is a source of funds.

Which of the Following Is an Example of a Source